On January 1, 2019, Devens Inc. entered into a 8-month, non-renewable lease to rent office equipment....

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On January 1, 2019, Devens Inc. entered into a 8-month, non-renewable lease to rent office equipment. The lease payment is $2,000 per month first due on January 31, 2019 The interest rate implicit in the lease is 8.4% per annum (0.7% per month) and Devens, which has an incremental borrowing rate of 7.6% per year, knows this Devens has a December 31 year-end and depreciates similar equipment on a straight-line basis Required a. Assume that Devens Inc. elects to expense leases of a short-term nature Prepare the journal entries for the month of January 2019 b. Assume that Devens Inc does not elect to expense leases of a short-term nature Prepare the journal entries for the month of January 2019 On January 1, 2019, Devens Inc. entered into a 8-month, non-renewable lease to rent office equipment. The lease payment is $2,000 per month first due on January 31, 2019 The interest rate implicit in the lease is 8.4% per annum (0.7% per month) and Devens, which has an incremental borrowing rate of 7.6% per year, knows this Devens has a December 31 year-end and depreciates similar equipment on a straight-line basis Required a. Assume that Devens Inc. elects to expense leases of a short-term nature Prepare the journal entries for the month of January 2019 b. Assume that Devens Inc does not elect to expense leases of a short-term nature Prepare the journal entries for the month of January 2019

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General Entries Date Account Title and Explanations Post Ref Debit Credit a Le... View the full answer