Novak Limited has entered into an agreement to lease manufacturing equipment. The following terms are...
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Accounting
Novak Limited has entered into an agreement to lease manufacturing equipment. The following terms are included in the lease:
Lease terms
years
Payments required monthly on the last day of the month $
Leasing interest rate
annum
Estimated useful life of equipment
years
PV of lease payments
$
The lease is entered into on January The equipment can be purchased for $ The company uses straightline depreciation.
a
Prepare the journal entry for to recognize the lease. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entry before credit entry.
Date
Account Titles
Debit
Credit
January
Answer & Explanation
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