Question
Cool Equip Corp leased equipment to Hy Marx Co.and recorded a lease of $600,000 in a 10-year sales-type lease. The cost of the equipment to
Cool Equip Corp leased equipment to Hy Marx Co.and recorded a lease of $600,000 in a 10-year sales-type lease. The cost of the equipment to Cool Equip Corp was $475,000. Lease payments are made annually at January 1 of each year beginning January 1, 2018. The interest rate charged by the lessor is 10%.
Required: Prepare the appropriate journal entries on January 1, 2018 for Cool Equip Corp.
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Introduction To Data Analytics For Accounting
Authors: Vernon Richardson, Katie Terrell, Ryan Teeter
1st Edition
126406828X, 978-1264068289
