Question: On Dec 31, 2018, Lang Co. leased a ship from Fort Co. for eight years, returning it on Dec 31, 2026. Equal annual payments of

On Dec 31, 2018, Lang Co. leased a ship from Fort Co. for eight years, returning it on Dec 31, 2026. Equal annual payments of 500,000 were due on Dec 31 of each year, beginning Dec 31, 2018. Compute the PV of the 8 lease payments as at Dec 31, 2018, discounted at 10% and provide all the lease related journal entries required by Lang Dec 31, 2018 - 2026.

Dec31	Dr.	Cr.	Dec 31	Dr.	Cr.
2018			2022





2019			2023





2020			2024





2021			2025





			2026

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