Question Details

Hewitt Car Rental leased a car to Ryan Corporation



Ryan Corporation entered into the following transactions:

1.	Hewitt Car Rental leased a car to Ryan Corporation for one year. Terms of the operating lease call for monthly payments of $750.

2.	On January 1, 2011, Ryan Corporation entered into an agreement to lease 20 machines from Meeks Corporation. The terms of the lease agreement require an initial payment of $175,000 and then three annual rental payments of $210,000 beginning on December 31, 2011. The present value of the three rental payments is $522,238. The lease is a capital lease.

Instructions
Prepare the appropriate journal entries to be made by Ryan Corporation in January related to the lease transactions.




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