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Algoma, Inc., signs a five-year lease for office equipment with Office Solutions. The present value of the lease payments is $16,350. Prepare the journal entry that Algoma records at the inception of this finance lease. View transaction list Journal entry worksheet A Record right-of-use lease asset of $16,350. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal Accounts payable Accounts receivable Accumulated depreciation Bond interest expense Bond interest payable Bonds payable Cash Common stock Contributed capital in excess of par value Depreciation expense Niccountan handa nahla Discount on bonds payable Gain on retirement of bonds payable Interest payable Lease liability Loss on retirement of bonds payable Premium on bonds navable Premium on bonds payable Rental expense Right-of-use asset Algoma, Inc., signs a five-year lease for office equipment with Office Solutions. The present value of the lease payments is $16,350. Prepare the journal entry that Algoma records at the inception of this finance lease. View transaction list Journal entry worksheet A Record right-of-use lease asset of $16,350. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal Accounts payable Accounts receivable Accumulated depreciation Bond interest expense Bond interest payable Bonds payable Cash Common stock Contributed capital in excess of par value Depreciation expense Niccountan handa nahla Discount on bonds payable Gain on retirement of bonds payable Interest payable Lease liability Loss on retirement of bonds payable Premium on bonds navable Premium on bonds payable Rental expense Right-of-use asset

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