Assume the same information as in P21-4. (Round all numbers to the nearest cent.) (a) Assuming the

Question:

Assume the same information as in P21-4.

(Round all numbers to the nearest cent.)

(a) Assuming the lessor’s accounting period ends on September 30, answer the following questions with respect to this lease agreement.

(1) What items and amounts will appear on the lessor’s income statement for the year ending September 30, 2011?

(2) What items and amounts will appear on the lessor’s balance sheet at September 30, 2011?

(3) What items and amounts will appear on the lessor’s income statement for the year ending September 30, 2012?

(4) What items and amounts will appear on the lessor’s balance sheet at September 30, 2012?

(b) Assuming the lessor’s accounting period ends on December 31, answer the following questions with respect to this lease agreement.

(1) What items and amounts will appear on the lessor’s income statement for the year ending December 31, 2010?

(2) What items and amounts will appear on the lessor’s balance sheet at December 31, 2010?

(3) What items and amounts will appear on the lessor’s income statement for the year ending December 31, 2011?

(4) What items and amounts will appear on the lessor’s balance sheet at December 31, 2011?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...