Brief Exercise 21-9 Your answer is partially correct. Try again. Stellar Corpora

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Brief Exercise 21-9 Your answer is partially correct. Try again. Stellar Corporation enters into a 5-year lease of equipment on January 1, 2017, which requires 5 annual payments of $43,200 each, beginning January 1, 2017. In addition, Stellar guarantees the lessor a residual value of $18,000 at lease-end. The equipment has a useful life of 5 years. Prepare Stellar January 1, 2017, ournal entries assuming an interest rate of 9% (Credit account titles are automatica , in ente when a ou tis entered. D not de tma a r entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.) o Date Account Titles and Explanation 12: Credit January 1, 2017 nterest Payable 18000 Lease Liability 183155.90 To record the lease.) January 1, 2017 Lease Liability 18000 Interest Expense (To record first lease payment.) Click if you would like to Show Work for this question: Open Show Work

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Workings

Date Accounts Titles and Explantion Debit Credit Jan. 1 2017 Leased Equipment 194,855 Leased Liability 194,855 To record the lease Jan. 1 2017 Leased Liability 43,200 Cash 43,200 To record first lease payment

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