Merrill Corporation, which uses ASPE, enters into a six-year lease of equipment on September 13, 2014, that

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Merrill Corporation, which uses ASPE, enters into a six-year lease of equipment on September 13, 2014, that requires six annual payments of $28,000 each, beginning September 13, 2014. In addition, Merrill guarantees the lessor a residual value of $17,000 at lease end. The equipment has a useful life of six years. Prepare Merrill's September 13, 2014 journal entries, assuming an interest rate of 9%.

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Intermediate Accounting

ISBN: 978-1118300855

10th Canadian Edition Volume 2

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy

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