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New Corp. recorded a Capital Lease for the purchase of his car, The interest rate is 12%. Rick Co makes annual lease payments of $35,947 on January 1, 2010. The car has an economic life of 8 years with no salvage value, and is depreciated using the straight- line method. Requested: a. Calculate the Capital amount where interest, 10% 8 years: 5.86842, 11% 8 years: 5.71220.. 12% 8 years: 5.56376 (round up) b. Prepare the lease table c. Make a capital amount journal, journal on 1 January 2010, and journal on 31 December 2010 (for interest payable, & depreciation) d. Submit in the balance sheet as of December 31, 2010.

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Wendy Iskandar

Lvl 2
2y ago
Updated: 6/21/2023

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