! Required information [The following information applies to the questions displayed below.] On January 1 of this year, Google Corporation leased a package of high-speed servers by signing a five-year finance lease. Lease payments of $300,000 are due at the end of each year. Google uses the straight-line method to amortize leased assets and the effective interest rate method to amortize lease liabilities. Assume that the appropriate annual discount rate is 9 percent. Prepare the journal entries to record the reduction of the lease asset and the lease liability on December 31, Year 2. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to 2 decimal places. 1 No Transaction a. > Answer is not complete. General Journal Debit Credit Lease liability × 300,000.00 Cash 300,000.00
! Required information [The following information applies to the questions displayed below.] On January 1 of this year, Google Corporation leased a package of high-speed servers by signing a five-year finance lease. Lease payments of $300,000 are due at the end of each year. Google uses the straight-line method to amortize leased assets and the effective interest rate method to amortize lease liabilities. Assume that the appropriate annual discount rate is 9 percent. Prepare the journal entries to record the reduction of the lease asset and the lease liability on December 31, Year 2. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to 2 decimal places. 1 No Transaction a. > Answer is not complete. General Journal Debit Credit Lease liability × 300,000.00 Cash 300,000.00
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 17MCQ: Which of the following statements regarding the new accounting rules, which take effect in 2019, for...
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