At 1 January 20X1, Marvelle has a lease liability of 160,000, at a discount rate of 6 %. The annual lease payment of 38,000 is paid in arrears on 31 December 20X1. Record the 20X1 entries relating to the lease liability: interest for the year, then payment of the lease instalment.
- Lease liability at 1 January 20X1
- 160,000
- Discount rate
- 6 %
- Lease payment made on 31 December 20X1
- 38,000