On January 1,2010,Leyden Corporation leased a truck,agreeing to pay $15,252 every December 31 for the entire 6-years of the lease.The present value of the lease payments,at 6% interest is $75,000.The lease is considered a capital lease.
(a)Prepare the general journal entry to record the acquisition of the truck based on a capital lease.
(b)Prepare the general journal entry to record the first lease payment on December 31,2010.
(c)Record straight-line depreciation on the truck on 12/31/10,assuming a 6-year life and no salvage value.

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The Answer of On January 1,2010,Leyden Corporation leased a truck,agreeing to pay $15,252 every December 31 for the entire 6-years of the lease.The present value of the lease payments,at 6% interest is $75,000.The lease is considered a capital lease.
(a)Prepare the general journal entry to record the acquisition of the truck based on a capital lease.
(b)Prepare the general journal entry to record the first lease payment on December 31,2010.
(c)Record straight-line depreciation on the truck on 12/31/10,assuming a 6-year life and no salvage value.

On January 1,2010,Leyden Corporation Leased a Truck,agreeing to Pay $15,252