Fresco Ltd Enters into a Non-Cancellable Lease Agreement with Meola

question 13

Multiple Choice

Fresco Ltd enters into a non-cancellable lease agreement with Meola Ltd to lease some equipment under the following conditions:

The interest rate implicit in the lease is 9 per cent and the fair value of the asset at the inception of the lease is $81,199. What are the journal entries to record the lease payment at inception of the lease, and the next two lease payments, in the books of the lessee (rounded to the nearest dollar) ?

---

Definitions:

Chronological

Relating to the arrangement of events or dates in the order of their occurrence in time.

Perceived Ages

The ages individuals feel or believe they are, which may differ from their chronological age.

Mature Market

A market that has reached a state of equilibrium or saturation, with slow growth or no growth in demand.

Arthritic Support

Assistance or products designed to help individuals suffering from arthritis, aiming to ease pain and improve mobility.