Lease PMT | Interest | Lease Reduction | Lease Liability | ||
1 | $126,830 | $521,450 | |||
2 | $126,830 | $62,574 | $64,256 | $457,194 | |
3 | $126,830 | $54,863 | $71,967 | $385,227 | |
4 | $126,830 | $46,227 | $80,603 | $304,625 | |
5 | $126,830 | $36,555 | $90,275 | $214,350 | |
6 | $126,830 | $25,722 | $101,108 | $113,241 | |
7 | $126,830 | $13,589 | $113,241 | $0 | |
Date | Accounts Titles and Explanation | Debit | Credit | ||
12/31/17 | Amortization Expense | $64,256 | |||
Right-of-use Asset | $64,256 | ||||
(To record amortization) | |||||
12/31/18 | Lease Liability | $126,830 | |||
Cash | $126,830 | ||||
(To record lease payment) | |||||
Amortization Expense | $71,967 | ||||
Right-of-use Asset | $71,967 | ||||
(To record amortization) | |||||
Interest Expenses | $54,863 | ||||
Lease Liability | $54,863 | ||||
(To record interest) |
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