Current Attempt in Progress

On January $1,2027,$ Carla Vista Inc. entered into an agreement to lease $20$ computers from Drummond Electronics. The terms of the

lease agreement require three annual rental payments of $$40,000($including $10\%$ interest$)$ beginning December $31,2027.$ The present

value of the three rental payments is $$99,472.$ Carla Vista considers this a finance lease.

Prepare the journal entry to record the lease agreement on the books of Carla Vista Inc. on January $1,2027.($Credit account titles are

automatically indented when amount is entered. Do not indent manually.$)$

Date Account Titles and Explanation

Debit

Credit

Jan. $1$