On January 2. 201 X, Avery Accessories, Inc. entered into a 6 year, non-cancelable lease a Net of trucks. The economic life of the trucks are 6 years, and title transfers at the cad of the leasing period, with bargain purchase price of $50,000 The lease calls annual 1),1 meats of $100,000, beginning with the signing of the lease, and at the incoming of the next five years. The bargain purchase price will be paid at the end of the eighth year. P1 he borrowing rate for Avery is 6%.
Required:
1) Prepare, in good form, a "Schedule of Lease Payments" (Note, be sure to round oil the past payment to reflect the balance due on the lease as $ 0).
2) Prepare in good form, the first two years of journal entries related to the lease acquisition, payments, and amortization (use straight-line).
Attachment:- Assignment.rar