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Assume that IBM leased equipment that was carried at the cost of 1 9 5 0 0 to cullumber company. the term of the lease

Assume that IBM leased equipment that was carried at the cost of 19500 to cullumber company. the term of the lease is 6 years beginning december 312024 with equal rental payments of 30200 beginning december 312024 the fair value of the equipment at commencement of the lease is 150780 the equipment has a useful life of 6 years with no salvage value the lease has an implicit interest rate of 8% no bargain purcahse option and no transfer of title collectibility of lease payments for IBM'S ProbableAssume that IBM leased equipment that was carried at a cost of $195,000 to Cullumber Company. The term of the lease is 6 years
beginning December 31,2024, with equal rental payments of $30,200 beginning December 31,2024. The fair value of the equipment
at commencement of the lease is $150,780. The equipment has a useful life of 6 years with no salvage value. The lease has an implicit
interest rate of 8%, no bargain purchase option, and no transfer of title. Collectibility of lease payments for IBM is probable.
Prepare IBM's December 31,2024, journal entries at commencement of the lease. (List all debit entries before credit entries. Credit
account titles are automatically indented when 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. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round
final answers to 0 decimal places e.g.5,275.)
Click here to view factor tables.
Date
December
31,2024
Account Titles and Explanation
Debit
Credit
Cash
(To record the lease)
December
31,2024
(To record receipt of lease payment)
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