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Pronghorn Corporation agrees on January 1, 2020, to lease equipment from Packers, Inc. for 3...

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Accounting

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Pronghorn Corporation agrees on January 1, 2020, to lease equipment from Packers, Inc. for 3 years. The lease calls for annual lease payments of $17,000 at the beginning of each year The lease does rot transfer ownership, contain a bargain purchase option, and is not a specialized asset. In addition, the economic lfe of the equipment is 10 years, and the present value of the lease payments s less than 90 % of the fair value of the equipment Prepare Pronghorn' journal entries on January 1, 2020 lcommencement of the operating leasel, and on December 31, 2020 Assume the implicit rate used by the lessor is 6, and this is known to Pronghorn Credit account titles are automatically indented when the amount is entered De not indent manually For cakudation purposes use 5 decimal places as disploved in the factor table provided and round final answers to "0" decimal places, eg 5,275 Record journmal entries in the order presented in the problem) Click here to view factor tables Date Account Titles and Explanation Debit Credit (To record lease lability) (To record lee payment)

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