Jefferson Financing,Inc.purchased a packing machine to lease to Puyallup Fruits.The lease qualifies as a direct financing lease and requires lease payments of $58,860 per year,payable in advance,over a ten-year period.There is no expected residual value.The fair market value of the packing machine is $330,000--the same amount paid by Jefferson to purchase the asset.The lease term begins on January 1,2014.
Provide the journal entries required on Jefferson's books to

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The Answer of Jefferson Financing,Inc.purchased a packing machine to lease to Puyallup Fruits.The lease qualifies as a direct financing lease and requires lease payments of $58,860 per year,payable in advance,over a ten-year period.There is no expected residual value.The fair market value of the packing machine is $330,000--the same amount paid by Jefferson to purchase the asset.The lease term begins on January 1,2014.
Provide the journal entries required on Jefferson's books to