Question: Python Company leased equipment from Hope Leasing on January 1, 2011. Hope purchased the equipment at a cost of $222,666. There is no expected residual

Python Company leased equipment from Hope Leasing on January 1, 2011. Hope purchased the equipment at a cost of $222,666.

There is no expected residual value.
Required:
Prepare appropriate journal entries for Python for 2011. Assume straight-line depreciation and a December 31year-end.

Other information Lease term Annual payments Life of asset Fair value of asset Implicit interest rate Incremental rate 3 years $80,000 on January 1 each year 3 years $222,666 8% 8%

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