Make all the journal entries needed for candra

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Candra Company, machine dealer, machine repairer to Dodi Company on January 1, 2017. The lease is valid for a period of 8 years and requires the same annual payment of $ 35,013 at the beginning of each year. The first payment was received on January 1, 2017. Candra purchased the machine in 2016 for $ 160,000 The lease payment was reasonably predictable, and Candra estimated there was no significant uncertainty regarding the costs to be borne. Candra sets an annual rent to ensure a 10% return rate. The machine has an economic life of 8 years with no residual value and will be returned to Candra at the end of the lease term.

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Question 1. Calculate the amount of the loan due

Question 2. Make all the journal entries needed for Candra during 2017

Reference no: EM132576985

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