Day Corp. entered into a finance lease agreement with Night Leasing Ltd. on January 1, 2016. Day

Question:

Day Corp. entered into a finance lease agreement with Night Leasing Ltd. on January 1, 2016. Day Corp. agreed to pay Night annual payments of $24,154 on December 31 for the next three years to lease a vehicle with a fair value of $80,000. The interest rate implicit in the lease agreement was 8%.
Required:
1. Prepare the journal entries to record the assumption of the lease on January 1, 2016.
2. Prepare the lease repayment schedule.
3. Prepare the partial of Day Corp. at December 31, 2016. Assume the first lease payment has been made. Provide descriptions for journal entries. General ledger account numbers are not necessary. Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...