Python Company leased equipment from Hope Leasing on January 1, 2018. Hope recently purchased the eq
Python Company leased equipment from Hope Leasing on January 1, 2018. Hope recently purchased the equipment at a cost of $311,208. Other information: Lease term Annual payments Life of asset Fair value of asset Implicit interest rate Incremental rate 4 years $87,000 on January 1 each year 4 years $311,208 8% 8% There is no expected residual value. • Record the entry to lease the equipment from hope leasing on January 01, 2018. Record the cash paid for annual payment. Record the entry for interest expense. Record the entry for Amortization expense. Python Company leased equipment from Hope Leasing on January 1, 2018. Hope recently purchased the equipment at a cost of $311,208. Other information: Lease term Annual payments Life of asset Fair value of asset Implicit interest rate Incremental rate 4 years $87,000 on January 1 each year 4 years $311, 208 88 89 There is no expected residual value. Required: Prepare appropriate journal entries for Python for 2018. Assume straight-line depreciation and a December 31 year-end. • Record the entry to lease the equipment from hope leasing on January 01, 2018. o Date Jan 01, 2018 • Record the cash paid for annual payment. o Date Jan 01, 2018 • Record the entry for interest expense. o Date Dec 31, 2018 I • Record the entry for Amortization expense. o Date Dec 31, 2018
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