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  3. 1. a company entered into a lease on 1/1/16, that

1. A company entered into a lease on 1/1/16, that does not transfer ownership or...

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Accounting

1. A company entered into a lease on 1/1/16, that does not transfer ownership or contain a bargain-purchase option. Management assembled the following data:

Lease term

3 years, commencing 1/1/16

Useful life of the equipment

8 years

Present value of the minimum lease payment is less than 90% of the fair value of the asset leased.

Required payments

$35,000 at the beginning of each year

Using the attached T-account template, prepare the entry to recognize the lease payment on 1/1/16.

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