Quiz Chap 21 - (a) Prepare an amortization table (the note)...

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Quiz Chapter 21 Accounting 3312 Name:____________________________________ Hughey Co. as lessee records a capital lease of machinery on January 1, 2011. The seven annual lease payments of $350,000 are made at the beginning of each year. The present value of the lease payments at 10% is $1,874,341.24. Hughey uses the effective-interest method of amortization and straight line depreciation (no residual value). Instructions (Round to the nearest dollar.)
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Unformatted text preview: (a) Prepare an amortization table (the note) for 2011 and 2012. (b) Prepare all of Hughey's journal entries for 2011. $1874341.24 $350,000.0 0 $ - $350,000.0 0 $ 1524341.24 $350,000.0 0 $152434.12 4 $197565.87 6 $ 1326775.364 Machinery 1874341.24 Cash 350,000 Lease note payable 1524341.24 Interest Expense 152434.124 Interest Payable 152434.124 Depreciation Expense 267763.034 Accumulated Depreciation 267763.034...
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