Unformatted text preview: $112,388. The interest rate implicit in the lease is 1% per month. (a) Prepare the journal entry needed to record a payment under the office space lease. (b) Prepare the initial journal entry to record the office equipment lease. (c) Prepare the journal entries necessary to record the first and second payments under the office equipment lease. (d) Assuming straight-line depreciation over 60 months, prepare the journal entry to record monthly depreciation of the office equipment. (e) How would the financial reporting differ for the office space versus the office equipment?...
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This note was uploaded on 02/29/2012 for the course ACCOUNTING 101 taught by Professor Hudack during the Spring '11 term at FIU.
- Spring '11