On January 1, 2020, Throm Inc. entered into an agreement to lease 20 computers from Drummond Electronics. The terms of the lease agreement require three annual rental payments of $20,000 (including 10% interest) beginning December 31, 2020. The present value of the three rental payments is $49,735. Throm considers this a finance lease. Instructions Prepare the journal entry to record
Chapter 15, Exercises #14
On January 1, 2020, Throm Inc. entered into an agreement to lease 20 computers from Drummond Electronics. The terms of the lease agreement require three annual rental payments of $20,000 (including 10% interest) beginning December 31, 2020. The present value of the three rental payments is $49,735. Throm considers this a finance lease.
Instructions
Prepare the journal entry to record the lease agreement on the books of Throm Inc. on January 1, 2020.
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Answer
Jan.1Right-of-Use Asset....................................................49,735 Lease Liability.................................................... …View the full answer
Related Book For 
Accounting Principles
13th edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
ISBN: 978-1119411482