On January 1,2019,Fold and Hold Corporation Entered into a Capital

question 60

Essay

On January 1,2019,Fold and Hold Corporation entered into a capital lease for equipment,which had a current cash equivalent cost of $38,971.Fold and Hold paid cash of $10,000 on the date of entering into the lease,and promised to pay the balance in six equal annual installments on each December 31 beginning with December 31,2019.The lease contained a 10% interest rate on the unpaid balance.
A.Prepare the journal entry to record the capital lease on January 1,2019.
B.Prepare the entry to record the first installment payment on December 31,2019 (round to the nearest dollar).Assume that no adjusting entries have been made during the year.

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Definitions:

Order Takers

Individuals or systems responsible for taking customer orders without actively engaging in sales persuasion or additional selling.

Market Share

Market share is the percentage of a market (in terms of sales units or revenue) captured by a company or brand compared to its competitors.

Preserve Ongoing Relationships

The act or strategy of maintaining continuous and beneficial interactions and associations with others over time.

Outside Order Taking

A sales process that involves sales representatives visiting potential customers in their locations to take orders directly.