Indiana Jones Corporation enters into a 6-year lease of machinery on January 1, 2008, which requires 6

Question:

Indiana Jones Corporation enters into a 6-year lease of machinery on January 1, 2008, which requires 6 annual payments of $30,000 each, beginning January 1, 2008. In addition, Indiana Jones guarantees the lessor a residual value of $20,000 at lease-end. The machinery has a useful life of 6 years. Prepare Indiana Jones’ January 1, 2008, journal entries assuming an interest rate of 10%.

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...