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Question - Leased a delivery truck to YA right after purchasing it for $40,000 on December 31st, 2021. Its retail value is $45,114. The lease agreement specifies annual payments of $11,000, including $1,000 maintenance fee, beginning December 31st, and at each December 31 through 2024. The interst rate for determining payments was 10%. At the end of the four-year lease term (December 31, 2025), the truck was expected to be worth $15,000. The useful life of the truck is five years with no salvage value. The company uses straight-line method. In addition, the guaranteed residual value was $6,000. What is the journal entry for the transaction?
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