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The Journal Entry Recorded by the Lessee When the Payment

Question 11

Multiple Choice

The journal entry recorded by the lessee when the payment is made at the end of the first year is:


A) Dr Interest expense 4 225 Dr Lease liability 18 775
Cr Cash 23 000
B) Dr Lease liability 4 225 Dr Interest expense 18 775
Cr Cash 23 000
C) Dr Interest expense 1 610 Dr Lease liability 21 390
Cr Cash 23 000
D) Dr Lease liability 1 610 Dr Interest expense 21 390
Cr Cash 23 000

Correct Answer:

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