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  3. problem #3 on 12/31/16, hall inc entered into a le

PROBLEM #3 On 12/31/16, Hall Inc entered into a lease agreement with Oates Co. Hall...

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Accounting

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PROBLEM #3 On 12/31/16, Hall Inc entered into a lease agreement with Oates Co. Hall leased a machine from Oates for 9 years. The estimated useful life of the machine is 9 years. At the end of the 9 year lease term, ownership of the machine will transfer back to Oates. The lease agreement calls for annual payments of $150,000, to begin on 12/31/16. The borrowing rate is 10%. Rounded present value factor of an annuity due is 6.33 at 10%. a. Prepare a lease amortization table for 12/31/16&12/31/17. b. Prepare journal entries for both Hall&Oates for 12/3 1/16 & 12/31/17

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