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QUESTION: On January 1, 2020, the company signed on a lease contract which qualifies as...

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Accounting

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QUESTION: On January 1, 2020, the company signed on a lease contract which qualifies as finance lease. It calls for annual payments of $52,538 at 1/1/2020 for the first payments, and 12/31 of each year thereafter over a six-year lease term. The present value of total lease payment is $280,000 under 5% annual interest rate. Make journal entries for each of following dates, including any interest or amortization expenses. January 1, 2020, signs the lease contract and makes the first payment of $52,538 December 31, 2020, fiscal year-end, the second payment of $52,538 December 31, 2021, fiscal year-end, the third payment of $52,538

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