Problem
On July 1, 2014, Ghouls Unlimited leased a mobile haunted house to Skeptics, Inc. Ghouls regularly sells specialty mobile venues like this for $625,000, the present value of the minimum lease payments. Ghouls' cost for the house was $528,000. Skeptics will make six annual payments of $119,907 with the first payment due on the date of the lease's inception. The interest rate implicit in the lease is 6%. Collectibility of the payments is reasonably assured with no additional costs to Ghouls. Prepare Ghouls' 7/1/14 journal entry or entries.