Windom Co. as lessee records a capital lease of machinery on January 1,2008. The seven annual lease payments of $350,000 are made at the end of each year. The present value of the lease payments at 10% is $1,704,000. Windom uses the effective-interest method of amortization and the sum-of-years' -digits depreciation (no residual value).
Instructions
a) Prepare an amortization table for 2008 and 2008
b) Prepare all of Windom's journal entries for 2008
