A lease agreement that qualifies as a capital lease calls, Financial Accounting

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A lease agreement that qualifies as a capital lease calls

A lease agreement that qualifies as a capital lease calls for annual lease payments of $25,000 over a six-year lease term, with the first payment at January 1, the lease’s inception. The interest rate is 5% (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1

What is the outstanding balance?

What would be the interest payable at the end of the first year?

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Financial Accounting: A lease agreement that qualifies as a capital lease calls

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Financial Accounting: A lease agreement that qualifies as a capital lease calls

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