Use the information for Kleckner Corporation from IFRS21.4. Assume that at December 31, 2020, Kleckner made an

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Use the information for Kleckner Corporation from IFRS21.4. Assume that at December 31, 2020, Kleckner made an adjusting entry to accrue interest expense of $20,133 on the lease. Prepare Kleckner’s January 1, 2021, journal entry to record the second lease payment of $48,337.


In IFRS21.4

Kleckner Corporation recorded a lease at $300,000 on December 31, 2019. Kleckner’s incremental borrowing rate is 8%, and the implicit rate of the lessor is not known. Kleckner made the first lease payment of $48,337 on December 31, 2019. The lease requires eight annual payments. The equipment has a useful life of 8 years with no residual value. Prepare Kleckner’s December 31, 2020, adjusting entries.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Intermediate Accounting

ISBN: 978-1119503668

17th edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfiel

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