On Dec. 31, 2016, the Eastville City water department leased equipment under a noncancelable lease agreement that transferred title to the city after making seven payments of $ 15,250. The present value 6% interest) of the minimum lease payments is $90,250. Payments are to take place on December 31 beginning in 2016.
Required: Prepare journal entries for 2016 and 2017 assuming the estimated useful life of the equipment is 10 years.

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The Answer of On Dec. 31, 2016, the Eastville City water department leased equipment under a noncancelable lease agreement that transferred title to the city after making seven payments of $ 15,250. The present value 6% interest) of the minimum lease payments is $90,250. Payments are to take place on December 31 beginning in 2016.
Required: Prepare journal entries for 2016 and 2017 assuming the estimated useful life of the equipment is 10 years.

On Dec 31, 2016, the Eastville City Water Department Leased Equipment