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  3. 12. wells co. as lessee records a finance lease of

12. Wells Co. as lessee records a finance lease of machinery on January 1, 20x1....

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Accounting

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12. Wells Co. as lessee records a finance lease of machinery on January 1, 20x1. The seven annual lease payments of $200,000 are made at the end of each year. The present value of the lease payments at 10% is $973,700. Wells uses the effective interest method of amortization and straight-line depreciation (no residual value). INSTRUCTIONS (Round to the nearest dollar. Some rounding may be required on the last payment.) (a) Prepare a full amortization table for Wells for the full seven years. Date Pmt Interest Expense Principle Liability Balance (b) Prepare all of Wells' journal entries for 20x1. (c) Prepare all of Wells' journal entries for 20x2

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