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A finance lease requires 8 annual payments of $25,000 with the first payment at the beginning of the lease. The interest rate is 8%. The
A finance lease requires 8 annual payments of $25,000 with the first payment at the beginning of the lease. The interest rate is 8%. The lessor has acquired the leased equipment for $135,000. The initial entry on the books of the LESSOR would include:
a. credit right-of use asset $135,000
b. credit sales revenue $143,666
c. debit cost of good sold $110,000
d. debit lease receivable $155,159
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Financial Accounting Tools For Business Decision-Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
2nd Canadian Edition
0470833378, 978-0470833377
