Sheldon's Shirt Emporium leased a piece of manufacturing equipment on December 31, 20X4, classified as a finance
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Sheldon's Shirt Emporium leased a piece of manufacturing equipment on December 31, 20X4, classified as a finance lease. The lease requires three lease payments of $90,000 due each December 31st, with the first payment due December 31, 20X5. The contract's implied discount rate is 8% and the present value of the lease payments is $231,939. The journal entry to record the first cash payment on December 31, 20X5 will include what amount of interest expense?
Related Book For
Financial and Managerial Accounting Information for Decisions
ISBN: 978-0078025761
6th edition
Authors: John Wild, Ken Shaw, Barbara Chiappetta
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