Diablo Company Leased a Machine from Juniper Corporation on January

question 55

Essay

Diablo Company leased a machine from Juniper Corporation on January 1, 2013. The machine has a fair value of $20,000,000. The lease agreement calls for four equal payments at the end of each year in the amount of $6,309,410. The useful life of the machine was expected to be four years with no residual value. The appropriate interest rate for this lease is 10%.
Required:
1. Prepare the journal entry for Diablo Company at the inception of the lease.
2. Prepare the journal entry for the first lease payment.
3. Prepare the journal entry for the second lease payment.

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Definitions:

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The effect that parents have on their children’s development, behaviors, beliefs, and attitudes, through their parenting styles, practices, and examples.

Divorce-Stress-Adjustment Perspective

A theoretical framework that examines how individuals cope with the stress of divorce and adjust to changes in their lives and relationships.

Selection Perspective

A viewpoint in psychology that suggests individuals selectively choose environments that complement their heredity.

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