Fresco Ltd enters into a non-cancellable lease agreement with Meola Ltd to lease some equipment under the following conditions: The interest rate implicit in the lease is 9 per cent and the fair value of the asset at the inception of the lease is $81,199.What are the journal entries to record the lease payment at inception of the lease,and the next two lease payments,in the books of the lessee (rounded to the nearest dollar)?
E) None of the given answers.

Question

Fresco Ltd enters into a non-cancellable lease agreement with Meola Ltd to lease some equipment under the following conditions:  The interest rate implicit in the lease is 9 per cent and the fair value of the asset at the inception of the lease is $81,199.What are the journal entries to record the lease payment at inception of the lease,and the next two lease payments,in the books of the lessee (rounded to the nearest dollar)?
E) None of the given answers.

Quizplus · Accepted Answer

The Answer of Fresco Ltd enters into a non-cancellable lease agreement with Meola Ltd to lease some equipment under the following conditions:  The interest rate implicit in the lease is 9 per cent and the fair value of the asset at the inception of the lease is $81,199.What are the journal entries to record the lease payment at inception of the lease,and the next two lease payments,in the books of the lessee (rounded to the nearest dollar)?
E) None of the given answers.

Fresco Ltd Enters into a Non-Cancellable Lease Agreement with Meola