(This problem requires use of present value tables.)
Cambridge Company leased equipment from Amherst Company on January 1, 2014. Information about the lease is as follows:
Required:
a.Compute the present value of the minimum lease payments.
b.Classify the lease from the viewpoint of Cambridge Company, giving reasons.
c.Prepare Cambridge's journal entry or entries for the lease for 2014.

Question

(This problem requires use of present value tables.)
Cambridge Company leased equipment from Amherst Company on January 1, 2014. Information about the lease is as follows: 
Required: 
a.Compute the present value of the minimum lease payments.
b.Classify the lease from the viewpoint of Cambridge Company, giving reasons.
c.Prepare Cambridge's journal entry or entries for the lease for 2014.

Quizplus · Accepted Answer

The Answer of (This problem requires use of present value tables.)
Cambridge Company leased equipment from Amherst Company on January 1, 2014. Information about the lease is as follows: 
Required: 
a.Compute the present value of the minimum lease payments.
b.Classify the lease from the viewpoint of Cambridge Company, giving reasons.
c.Prepare Cambridge's journal entry or entries for the lease for 2014.

(This Problem Requires Use of Present Value Tables.)