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Journalize the acquisition of the equipment

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Question - Austin Construction Inc. acquired equipment under a capital lease that requires annual lease payments of $25000. The first payment is due when the lease begins on January 2, . Future payments are due on January 2 of each year of the lease term. The interest rate in the lease is 14 percent and the present value of the five future lease payments is $85257. Journalize (a) the acquisition of the equipment, (b) the amortization for , (c) the accrued interest at December 31, , and (d) the second lease payment on January 2?

Reference no: EM132768360

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