Question: On Jan 1, 2018, Oldham Co. signed a five-year lease for a plane from STK Co. The lease required Oldham to make annual payments of

On Jan 1, 2018, Oldham Co. signed a five-year lease for a plane from STK Co. The lease required Oldham to make annual payments of $180,000 at the beginning of each year for five years with the plane returning to Stockport on Dec 31, 2022. Oldham uses straight-line depreciation. On Jan 1, 2018, the lease payments had a present value of $750,578 at an effective interest rate of 10%. Provide Oldhams journal entries for the following dates. [6 marks]

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