On August 1, 2016, Alpha Company entered into a capital lease, and correctly rec
ID: 2606499 • Letter: O
Question
On August 1, 2016, Alpha Company entered into a capital lease, and correctly recorded the leased asset, and related obligation at $50,000. The annual interest rate implicit in the lease was 6%, and the first lease payment of $2,000 is due at the end of each month of the lease. Use this information to prepare the General Journal entry (without explanation) for the August 31, 2016 monthly lease payment. If no entry is required then write "No Entry Required." (Round your answer to the nearest whole dollar.
Explanation / Answer
Use this information to prepare the General Journal entry (without explanation) for the August 31, 2016 monthly lease payment.
Date accounts & explanation debit credit 2016, Aug 31 Lease Liability 1750 Interest payable (50000*6%*1/12) 250 Cash a/c 2000 (To record lease payment)Related Questions
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