show all entrjes including interest expense
Please show all work On January 1, 2019, Kimberly Clark Corp. signed a 6-year noncancelable lease agreement to lease an industrial-strength mulching machine. The following information pertains to this lease. 1. Kimberly Clark is required to make equal annual rental payments of $80,116, with the first payment due on January 1, 2019, the date the lease was signed. 2. The fair value of the machine on January 1, 2019, was S400,000. 3. The machine has an estimated economic life of 10 years. 4. The term of the lease is 6 years. 5. Kimberly Clark depreciates similar machines using the straight-line method. 6. The lease is nonrenewable. At the termination of the lease, the equipment reverts to the lessor. 7. At the end of the lease term, the lessor expects to be able to resell the equipment for $35,000. Kimberly Clark is not guaranteeing that residual value. 8. Kimberly Clark's incremental borrowing rate is 8% per year. The lessor's implicit rate is not known by Kimberly Clark. 1. State your conclusion regarding how Kimberly Clark (the lessee) should classify this lease. 2. Prepare dated journal entries to record all of the transactions that Kimberly Clark needs to record for the year ending December 31, 2019. 3. Compute the amount of Interest Expense and the amount of Amortization Expense that Kimberly Clark should report in its 2019 Income Statement. 4. Compute the amount of the Right-of-Use Asset and the amount of the Lease Liability that Kimberly Clark should report in its 2019 Dola

"Get 15% discount on your first 3 orders with us"
Use the following coupon

Order Now