Answers
Date | Annual payments | 10% Interest | Reduction of liability | Lease liability |
1/1/2021 | 4683287 | |||
12/31/2021 | 875000 | 468329 | 406671 | 4276616 |
12/31/2022 | 875000 | 427662 | 447338 | 3829277 |
General Journal | Debit | Credit |
Leased Machinery | 4683287 | |
Leased Liability | 4683287 | |
Interest Expense | 468329 | |
Lease Liability | 406671 | |
Cash | 875000 |
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