Brief Exercise 21A-10 Your answer is partially correct. Try again. Assume that 16M leased equipment that was carried at a cost of $125,000 to Pharoah Company. The term of the lease s 5 years December 31, 2016, with equal rental payments of $35,330 beginning December 31, 2016. The fair value of the equipment at commencement of the lease is $155,000. The equipment has a use life of 5 yean with no salvage value. The lease has an implicit interest rate of 71, no bargain purchase option, and no transfer of uitle. Collectibity of lease payments for IBM is probable Prepare 16M's December 31, 2016, journal entries at commencement of the lease. (Credit account titles are automatically indented when amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round Rinal answers to decimal places c.g. 5,275.) ASSIGNMENT RESOURCES CH 21A Homework Bred Exercise 212 Are Exercise 214 Exercise 2A- Bref Exerc214.2 Brief Exercise 21A-1C Exerce 214 E red Exercise 214.12 Brief Exercise 21413 BEZIA Brief Exercise 21A-15 Brief Exercise 21:16 Bref Exerce AZ Brief Exercise 21A-18 Brief Exercise 21A-23 Brief Exercise 21A24 Brief Exercise 211-26 Ber Exec 24-28 Brief Exercise 211-29 ef Exec 24 Exercise 214-23 Exercise 214243 Click here to view the factor table Date Account Titles and Explanation December 31, 2016 Lease Receivable 1 Cost of Goods Sold Sales Revenue to record the lease) Review Score Review Results by Study Objective December 31, 2016 Cash Lease Receivable Kendra d ate Accounting noe 383) Home Read, Study & Practice Assignment Gradebook ORION Downloadable eTextbook Assignment > Open Assignment CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXT Your answer is partially correct. Try again. LeBron James (LB) Corporation agrees on January 1, 2017, to lease equipment from Cavaliers, Inc. for 3 years. The lease calls for annual lease payments of $21,000 at the beginning of each year. The lease does not transfer ownership, nor does it contain a bargain purchase option, and is not a specialized asset. In addition, the useful life of the equipment is 10 years, and the present value of the lease payments less than 90% of the fair value of the equipment. Prepare LBJ's Journal entries on January 1, 2017 commencement of the operating lease), and on December 31, 2017. Assume the implicit rate used by the lessor is unknown, and this incremental borrowing rate 4%. (Credit account titles are automatically Indented when the amount is entered. Do not indent manually. For calculation purposes, use s decimal places as displayed in the factor table provided and round final answers to decimal places, e.g. 5,275) Click here to view the factor table ASSIGNMENT RESOURCES CH 21A Homework Brief Exercise 21:2 Dureros Bref Exercise 214-6 El Brief Exec 21 AZ Brief Exercise 21A-10 Bref Exer 21:11 Bred Exercise Brief Exercise 214.13 Brief Exercise ZLA.14 Brief Exercise 21A-1S Brie Berge 21A-16 Bet Exe2A Def Exe214-18 Bost Exer 21- Brief Exercise 21 21A-26 Brief Exercise 14.20 De 14:29 Bee 2A-12 trec 214.23 Exercise 21A-24- 1/1/17 Right of Use b ) payment) Review Score Review Results by Study 12/31/17 Lease 1941 Home Read, Study & Practice Assignment Gradebook ORION Downloadable Textbook Assignment > Open Assignment CALCULATOR FULL SCREEN PRINTE Click here to view the factor table, Debit Credit Date Account Titles and Explanati 1/1/17 Right-of-Use Asset 0509 Lease Liability ASSIGNMENT RESOURCES CH 21A Homework Brief Exercise 214-2 Brever 21A de eRZIAS Bret Energie A-Z Brief Exercise 21A-10 Brief Exercise ZIALI Brie ECE ZAPIZ Brief Fercise 214-13 Brief Exercise 214 Brief Exercise 214.15 Brief Exercise 21A-16 Brief Exercise 21A12 Brief Exercise 21A-18 (To record lease liability) 1/1/17 Lease Liability Cash (To record fease payment) 12/31/17 Lease Expense Baswers 21A-24 binet Exercise 211-26 Brief Exercise 214-28 Lease Liability Right-of-Use Asse Best Exec 2410 Exercise 214-23 Ercise 214-24 Review Score Review Results by Study Objective By accessing this Question Assistance, you will leam while you earn points based on the Point Potential Policy set by your instructor Question Attempts: 3 of 4 used SAVE FOR Eam Maximum Points available only Assignment Open Assignment ASSIGNMENT RESOURCES CH21A Homework Eren AZ ref Exerre 21 CALCULATOR FULL SCREEN PRINTER VERSION BACK Indigo Corporation assegurent from a company on lauary 1, 2017. The lease agreement does not transformer contain a large purchase action and is not a speciales . It cover 3 years of the equipment's year and the present of the payments than of the fare of the leased E AZ Prepare Indigo's Journal entries on January 1, 2017, and December 31, 2017. Assume the w allease payment is $35.000 at the beginning of each year, and Indiges incremental borrowing rates , which is the same as the lessons importe (Crea t ors are automatically indented when the mo n terede moindent manay Por cada dece d ather beredd andre lan dets 5,265) re E Old her to A :12 ZA the factor table Date plantion Account Tiles and Right-of-Use Asset ref. 21.te 1/ Lety 21 21:24 Brief 14-20 Bet Exercise 214.20 (To records ) Lease Liability be Exercise Exercise 21:24 (To record payment) Lease Expense Lease Liability Home Read, Study & Practice Assignment Gradebook ORION Downloadable eTextbook Assignment > Open Assignment CALCULATOR FULL SCREEN PRINTER VER ac VW Toros Date Account Titles and Explanation Credit 1/1/17 Right-of-Use Asset Lease Liability (To record lease liability) 1/1/17 Lease Liability ASSIGNMENT RESOURCES CH 21A Homework Brief Exercise 21A-2 Brief Exercise 214.3 Arief Exercise 214.6 Brief Exercise 21A-Z Brief Exercise 21A-10 Beef Exercise 2A- Brief Exercise 214-12 El Griet brede 2 3 B ene 211 Beef Exercise 21A-15 Brief fercise 211-10 Brief Exercise 2LATZ Brief Exercise 214-18 Briefe 214.23 Brief Exercise 21A-24 Brief Exercise 21-25 net Exercise 2A-28 Brief Exercise 211-29 Brief Exercise 214-30 Exercise 21A-23 Exercise 21A-24. - I Cash (To record lease payment) 12/31/17 Lease Expense 3850 | Lease Liability Right-of-Use AS 31150 Review Score Review Results by Study Objective By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. Question Attempts: 1 of 4 used SAVE PC