Answer:
The debit to lease payable on July 1, 2019 will be $ 670,741.31
Explanation:
According to the details, the present value lease payable as on July 1, 2018 is= $ 718,000
Also, the annual lease payments is = $ 102,641
With these details we are able to calculate the debit to lease payable on 2019, and the calculation is as follows
= ($ 718,000- $ 102,641) + 9% ( $ 718,000 - $ 102,641)
= $ 615,359 + $55382,31
= $ 670,741 July 1, 2019 debit to lease payable
