Question: hi please help me solve this i can not figure it out Question 28 On January 1, 2017, Martinez Corporation signed a 5-year noncancelable lease


hi please help me solve this i can not figure it out


Question 28 On January 1, 2017, Martinez Corporation signed a 5-year noncancelable lease for a machine. The terms of the lease called for Martinez to make annual payments of $8,317 at the beginning of each year, starting January 1, 2017. The machine has an estimated useful life of 6 years and a $5,300 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Martinez uses the straight-line method of depreciation for all of its plant assets. Martinez's incremental borrowing rate is 10%, and the lessor's implicit rate is unknown. Click here to view factor tables Compute the present value of the minimum lease payments. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.) The present value of the minimum lease payments $:| Prepare all necessary journal entries for Martinez for this lease through January 1, 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places e.g. 58,971.) Account Tides and Explanation Debit Credit SEES :E: (To record the lease.) :EE :E: (To record rst payment.) Date Account Titles and Explanation edit redit (To record the lease.) (To record first payment.) (To record depreciation.) (To record interest.) 1/1/18 (To record second payament.)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
