Company a Enters into a Lease Agreement with Company B

question 135

Essay

Company A enters into a lease agreement with Company B.The fair value of the asset is $100,000.The present value of the minimum lease payments is $90,000.The yearly payment is $10,000, depreciation amounts to $5,000 and the lease meets the requirement of an operating lease.What is the journal entry at the end of the first year assuming a full 12 months have passed?

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Definitions:

Practice

The repetitive execution of an activity or skill with the aim to improve proficiency and performance.

Title Slide

The introductory slide in a presentation or deck, typically including the presentation's title, presenter's name, and date.

Company Logo

A graphical mark or emblem used by businesses for identity and branding purposes.

Pitch Competitions

Events where entrepreneurs present their business ideas to a panel of judges or investors to win funding, support, or prizes.