Use the information for Kleckner Corporation from IFRS21.4. Assume that at December 31, 2020, Kleckner made an adjusting entry to accrue interest expense of $20,133 on the lease. Prepare Kleckner’s January 1, 2021, journal entry to record the second lease payment of $48,337.

In IFRS21.4

Kleckner Corporation recorded a lease at $300,000 on December 31, 2019. Kleckner’s incremental borrowing rate is 8%, and the implicit rate of the lessor is not known. Kleckner made the first lease payment of $48,337 on December 31, 2019. The lease requires eight annual payments. The equipment has a useful life of 8 years with no residual value. Prepare Kleckner’s December 31, 2020, adjusting entries.