Accounting Problem Instructions Com plete the missing parts of Question 5 png, Use the List of Accounts below MAKE SURE TO FOLLOW THE TEMPLATE OF Question 5 png WHEN DOING THE JOURNAL ENTRIES List of Accounts Accounts Payable Accounts Receivable Accumulated Depreciation Leased Buildings Accumulated Depreciation Buildings Accumulated Depreciation Leased Equipment Accumulated Depreciation Rental Equipment Accumulated Depreciation Right of Use Asset Accumulated Depreciation Software under Lease Accumulated Depreciation Vehicles Accumulated Depreciation Vehicles under Lease Amortization Expense Buildings Buildings under Lease Cash Cost of Goods Sold Deferred Profit on Sale Leaseback Depreciation Expense Equipment Equipment Acquired for Lessee Equipment under Lease Insurance Expense Insurance Payable Insurance Revenue Interest Expense Interest Income Interest Payable Interest Receivable Inventory Land Rental Expense Land under Lease Lease Liability Lease Receivable Legal Expense Loss on Lease Low Value Lease Expense No Entry Obligations under Lease Operating Expenses Prepaid Expenses Prepaid Insurance Prepaid Rent Property Tax Expense Rent Expense Rental Equipment Rent Payable Rent Receivable Rent Revenue Repairs and Maintenance Expense Right of Use Asset Sales Revenue Selling Expenses Short Term Lease Expense Software under Lease Unearned Interest Income Unearned Rent Revenue Vehicles Vehicles under Lease Question 5 png Pharoah Corp agreed to lease property from Bonita Corp effective January 1, 2020, for an annual payment of $25,592, beginning January 1, 2020 The property is made up of land with a fair value of $108,000 and a two storey office building with a fair value of $166,000 and a useful life of 25 years with no residual value The implicit interest rate is 9 , the lease term is 25 years, and title to the property will not be transferred to Pharoah by the end of the lease term Assume that there is also no bargain purchase option, but that the lease does meet other criteria to qualify as a capital lease Both Pharoah and Bonita use ASPE Prepare the required entries made by Pharoah Corp on January 1, 2020, and at its year end of December 31, 2020 (Credit account titles are automatically indented when the amount is entered Do not indent manually If no entry is required, select No Entry for the account titles and enter 0 for the amounts Round answers to O decimal places, e g 5,275 ) Date Account Titles and Explanation Debit Credit Jan 1 Buildings under Lease Obligations under Lease (To record inception of lease ) Jan 1 Obligations under Lease Rent Expense Cash 25592 (To record first lease payment ) Dec 31 Interest Expense Obligations under Lease (To record interest ) Dec 31 v Depreciation Expense 6640 Accumulated Depreciation Leased Buildings 6640 (To record depreciation expense )

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Accounting Problem Instructions Com plete the missing parts of Question 5 png, Use the List of Accounts below  MAKE SURE TO FOLLOW THE TEMPLATE OF Question 5 png WHEN DOING THE JOURNAL ENTRIES List of Accounts Accounts Payable Accounts Receivable Accumulated Depreciation   Leased Buildings Accumulated Depreciation   Buildings Accumulated Depreciation   Leased Equipment Accumulated Depreciation   Rental Equipment Accumulated Depreciation   Right of Use Asset Accumulated Depreciation   Software under Lease Accumulated Depreciation   Vehicles Accumulated Depreciation   Vehicles under Lease Amortization Expense Buildings Buildings under Lease Cash Cost of Goods Sold Deferred Profit on Sale Leaseback Depreciation Expense Equipment Equipment Acquired for Lessee Equipment under Lease Insurance Expense Insurance Payable Insurance Revenue Interest Expense Interest Income Interest Payable Interest Receivable Inventory Land Rental Expense Land under Lease Lease Liability Lease Receivable Legal Expense Loss on Lease Low Value Lease Expense No Entry Obligations under Lease Operating Expenses Prepaid Expenses Prepaid Insurance Prepaid Rent Property Tax Expense Rent Expense Rental Equipment Rent Payable Rent Receivable Rent Revenue Repairs and Maintenance Expense Right of Use Asset Sales Revenue Selling Expenses Short Term Lease Expense Software under Lease Unearned Interest Income Unearned Rent Revenue Vehicles Vehicles under Lease Question 5 png Pharoah Corp  agreed to lease property from Bonita Corp  effective January 1, 2020, for an annual payment of $25,592, beginning January 1, 2020  The property is made up of land with a fair value of $108,000 and a two storey office building with a fair value of $166,000 and a useful life of 25 years with no residual value  The implicit interest rate is 9 , the lease term is 25 years, and title to the property will not be transferred to Pharoah by the end of the lease term  Assume that there is also no bargain purchase option, but that the lease does meet other criteria to qualify as a capital lease  Both Pharoah and Bonita use ASPE  Prepare the required entries made by Pharoah Corp  on January 1, 2020, and at its year end of December 31, 2020  (Credit account titles are automatically indented when the amount is entered  Do not indent manually  If no entry is required, select  No Entry  for the account titles and enter 0 for the amounts  Round answers to O decimal places, e g  5,275 ) Date Account Titles and Explanation Debit Credit Jan  1 Buildings under Lease Obligations under Lease (To record inception of lease ) Jan  1 Obligations under Lease Rent Expense Cash 25592 (To record first lease payment ) Dec 31 Interest Expense Obligations under Lease (To record interest ) Dec 31 v Depreciation Expense 6640 Accumulated Depreciation   Leased Buildings 6640 (To record depreciation expense )

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Accounting Problem Instructions Com plete the missing parts of Question 5.png, Use the List of Accounts below. MAKE SURE TO FOLLOW THE TEMPLATE OF Question

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