Adam Limited and Davies Limited enter into a finance lease agreement with the following terms:...
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Adam Limited and Davies Limited enter into a finance lease agreement with the following terms: lease term is 3 years estimated economic life of the leased asset is 6 years 3 times annual rental payments of $23 000 each payment is one year in arrears residual value at the end of the lease term is not guaranteed by the lessee interest rate implicit in the lease is 7% The journal entry recorded by the lessee when the payment is made at the end of the first year is
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