Fisher Corporation leases photocopy equipment from Jonah Corporation at $24,000 per year for 3 years beginning January 1,2017.The payments are to be made each December 31,beginning in 2017.The lease agreement meets the criteria for a finance lease.The equipment is to be depreciated straight-line over three years.
Assuming a 6% rate of interest,record the entry on January 1,2017,the adjusting entry for depreciation on December 31,2017,and the entry to record the first lease payment.Round all values to the nearest dollar.

Question

Quizplus · Accepted Answer

The Answer of Fisher Corporation leases photocopy equipment from Jonah Corporation at $24,000 per year for 3 years beginning January 1,2017.The payments are to be made each December 31,beginning in 2017.The lease agreement meets the criteria for a finance lease.The equipment is to be depreciated straight-line over three years.
Assuming a 6% rate of interest,record the entry on January 1,2017,the adjusting entry for depreciation on December 31,2017,and the entry to record the first lease payment.Round all values to the nearest dollar.

Fisher Corporation Leases Photocopy Equipment from Jonah Corporation at $24,000