on January 1, leyden corporation leased a truck, agreeing to pay 15,252 eey Dece

Question

on January 1, leyden corporation leased a truck, agreeing to pay 15,252 eey December 31 for six year life of the lease. the present value of the lease payments, at 6% interest, is 75,000. The lease is considered a capital lease.a) Prepare a general journal entry to record the acquisition of the truk with the capital lease.b)prepare the general journal entry to record the first lease payment on December 31.c) record straightline depreciation on the truck n december 31, assuming a 6 year life and no slavage value.

Explanation / Answer

truck accout debit 75000

accounts ppayable 75000

lease payment debit 15252

cash 15252

B. depreciation Debit 12500

Truck 12500

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