On january 1 2008 fred leased equipment to ned for 70000 a

Reference no: EM13604029

On January 1, 2008, Fred leased equipment to Ned for $70,000 a year for 6 years, with the first payment being made on January 1, 2009. The equipment cost Fred $300,000 to make. If Fred requires an 8 percent return on this lease, how much is

a) What journal entry does Ned make on his books on January 1, 2008 in reference to the lease?]

b) What adjusting entry does Ned make in reference to this lease? c) How much is Ned's lease obligation on Dec 31, 2010?

Reference no: EM13604029

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