Question
Brief Exercise 21-9 Swifty Corporation enters into a 7-year lease of equipment on January 1, 2017, which requires 7 annual payments of $38,200 each, beginning
Brief Exercise 21-9
Swifty Corporation enters into a 7-year lease of equipment on January 1, 2017, which requires 7 annual payments of $38,200 each, beginning January 1, 2017. In addition, Swifty guarantees the lessor a residual value of $18,500 at lease-end. The equipment has a useful life of 7 years. Prepare Swifty January 1, 2017, journal entries assuming an interest rate of 11%.
| Date | Account Title | Debit | Credit |
| 1/1/17 | Leased Equipment | ??? | |
| Lease Liability | ??? | ||
| (To record the lease) | |||
| 1/1/17 | Lease Liability | 38,200 | |
| Cash | 38,200 | ||
| (To record first lease payment) |
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Stand Up To The IRS How To Handle Audits Tax Bills And Tax Court
Authors: Frederick W. Daily Robin Leonard
2nd Edition
0873372409, 978-0873372404
