Required information

Problem $9-4$A $($Algo$)$ Explore the impact of leases on the debt to equity ratio $($LO$9-3,9-$

$[$The following information applies to the questions displayed below.$]$

Thrillville has $$40\mathrm{.}9$ million in bonds payable. One of the contractual agreements in the bond is that

the debt to equity ratio cannot exceed $2\mathrm{.}0.$ Thrillville's total assets are $$80\mathrm{.}9$ million, and its liabilities

other than the bonds payable are $$10\mathrm{.}9$ million. The company is considering some additional financing

through leasing.

Problem $9-4$A $($Algo$)$ Part $3$

The company enters a lease agreement requiring lease payments with a present value of $$15\mathrm{.}9$ million. Record the

lease. $($If no entry is required for a particular transaction$/$event$,$ select $"$No Journal Entry Required" in the first account

field. Enter your answer in millions $($i$.$e$.,$ $$5,500,000$ should be entered as $5\mathrm{.}5)$ rounded to $1$ decimal place.$)$

The company enters a lease agreement requiring lease payments with a

present value of $$15\mathrm{.}9$ million. Record the lease.

Note: Enter debits before credits.