On January 1, 2016, Denise Company signed a lease agreement requiring ten annual payments of $14,000, beginning
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Question:
On January 1, 2016, Denise Company signed a lease agreement requiring ten annual payments of $14,000, beginning December 31, 2016. The agreement was classified as a capital lease. When reviewing Denise's accounting records, which of the following journal entries would not be expected?
a. Leased Equipment 105,210
Capital Lease Obligation 105,210
b. Interest Expense 7,365
Obligation Under Capital Leases 6,635
Cash 14,000
c. Depreciation Expense: Leased Equipment 10,521
Accumulated Depreciation:
Leased Equipment 10,521
d. Rent Expense 14,000
Cash 14,000
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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