• Dockside Inc. entered into a 5-year lease and made the first lease payment of $6,000 due upon commencement of the lease on January 1, 2020. Dockside Inc. was aware of the lessor's implicit rate of interest of 5%. The equipment under lease had an estimated 5-year useful life with no residual value.

  
  

  a) find the PV and PMT

  b) prepare the journal entry for the year 2020 assuming the present value of the lease payments is 30000 and the fiscal year end is 12/31

   

Answer rating: 100% (QA)

Answer To solve this problem we need to find the present value PV of the lease payments and the annu... View the full answer