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can you help me the red line?

Assament Gradebook ORION Downloadable eTextbook ent CALCULATOR FULL SCREEN PRINTER VERSION Brief Exercise 21A 30 Your answer is partially correct. Try again On lanuary 1, 2017. Novak Animation sold a truck to Peete Finance for $28000 and immediately leased it back. The truck was carried on Novak's books at $70.000. The term of the lease is 5 years, there is no bargain purchase option, and title does not transfer to Novak at lease end. The lease requires 5 equal rental payments of 59.268 at the end of each year (first payment on January 12018). The appropriate rate of interest is the truck has a useful life of 5 years, with no expected residual value at the end of the lease term Prepare Novak's 2017 journal entries assuming these new facts Credit account tites are automatically indented when the amount is entered. Do not indent many For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to decimal place 2 75) Click here to view the factor table Credit Date Account Titles and Explanation 1/1/17 Cash I Notes Parable 12/31/17 Interest Expense Lease Liability By accessing this Question Assistance, you will learn while you earn points based on the point potential policy set by your instructor

Answer 1

1 Jan, 2017	Cash	38000
	Note payable		38000
31 Dec, 2017	Interest expense	2660
	Cash/Interest on note payable		2660