Accounting for Lease Capitalization

Dear Fixed Assets and Property Manager Community,

Please see attached screen shots for my question.  We are still on Oracle Assets 11i.5.10.2.

  

Present Value = $2,820.09

Fair Value = $3,000

Cost to Capitalize = $2,820.09

LeaseType = Capitalized

Monthly lease payment = $92.74

Life = 36 months

Interest rate = 12% compound monthly

Total Interest = $518.55

Total Payment = $92.74 x 36 months = $3,338.64

Total Payment $3,338.64 = Present Value $2,820.09 + Total Interest $518.55

Oracle created these journal entries below:  (Am I correct?)

New Lease:

Dr. Asset Cost     $2,820.09

     Cr.Asset Clearing      $2,820.09

  

Monthly Lease Payment:

Dr. Account you assign on the lease     $92.74

      Cr.A/P                                                        $92.74

Monthly Depreciation:

Dr. Depreciation Expense     $2,820.09 divided by 36 months

      Cr. Accumulated Depreciation          $2,820.09 divided by 36 months

However, the result above is not what we want.  According to the accounting requirements from our Finance Division, these journal entries below are what they want: