128. On January 1, 2010, the Plimpton Corporation leased some equipment on a 2-year lease, paying $15,000 per year each December 31. The lease is considered to be an operating lease. Prepare the general journal entry to record the first lease payment on December 31, 2010.
129. On January 1, 2010, Leyden Corporation leased a truck, agreeing to pay $15,252 every December 31 for the entire 6-years of the lease. The present value of the lease payments, at 6% interest is $75,000. The lease is considered a capital lease.
(a) Prepare the general journal entry to record the acquisition of the truck based on a capital lease.
(b) Prepare the general journal entry to record the first lease payment on December 31, 2010.
(c) Record straight-line depreciation on the truck on 12/31/10, assuming a 6-year life and no salvage value.
130. On October 1 of the current year a corporation sold, at par plus accrued interest, $1,000,000 of its 12% bonds, which were dated July 1 of this year. What amount of bond interest expense should the company report on its current year income statement?
131. A company issued 9%, 10-year bonds with a par value of $1,000,000 on September 1, 2010 when the market rate was 9%. The bonds were dated June 30, 2010. The bond issue price included accrued interest. Interest is paid semiannually on December 31 and June 30.
(a) Prepare the issuer's journal entry to record the issuance of the bonds.
(b) Prepare the issuer's journal entry to record the semiannual interest payment on December 31, 2007.