Question: Python Company leased equipment from Hope Leasing on January 1, 2016. Hope purchased the equipment at a cost of $222, 666. There is no expected

Python Company leased equipment from Hope Leasing on January 1, 2016.

Python Company leased equipment from Hope Leasing on January 1, 2016. Hope purchased the equipment at a cost of $222, 666. There is no expected residual value. Required: Prepare appropriate journal entries for Python for 2016. Assume straight-line depreciation and a December 31 year-end. Hope has accounted for this lease as a direct-financing lease. Hope also uses the gross amount of payments to account for the receivable. Prepare Hope's journal entries for 2016

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