On 12/1/19 Choice leased a new machine. The machine normally sells for $23,500. The applicable interest rate is 8%. The lease term is 5 years and the machine has a useful life of 6 years. Annual payments begin December 1 2019, and due each subsequent year annually. There is no BPO; there is no transfer of ownership. Record the new capital lease and first payment made on 12/1/19. Round to the nearest dollar.

Regarding the above lease transaction, you do not need to do a complete amortization table. However, you do need to accrue the interest for 1 month (the month of December) in an adjusting entry dated 12/31/19. Also, do not worry about amortization expense. Lets just assume its included in the current expenses already.

$66,887 of the Lease Payable is expected to be paid within one years time.

Need Journal Entries done for the last 66887, thank you!