Deal Leasing leased equipment to Hand Company on January 1, 2018. The lease payments were calculated to provide the lessor a 8% return. Eight annual lease payments of $57,000 are due at the beginning of each year beginning January 1, 2018. The present value of an annuity due of $1 at 8 for Eight periods is 6.20637.
Required:
Consider this to be a finance lease. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amounts.)
1. Record the lease on the Lessee's books on January 1st 2018
2. Record the cash payment Lessee's books on January 1st 2018
3. Record accrued interst Lessee's books on December 31 2018
4. Record Ammortization schedule Lessee's books on December 31 2018.
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