Corporate Accounting

12. On 1 July 2020, Alpha Ltd leased a vehicle from Beta Company. The vehicle cost Beta Company $39,654.60 considered to be its fair value on that same day. However, the PV of the lease payment by Alpha Ltd at 1 July 2020 $36,389.40

Required journal entries for the Company Beta (lessor) at 01 July 2020?

Select one:

a. Dr Right to use of asset (Motor vehicle) $39,654.60 Cr Lease liability $39,654.60

b. Dr Right to use of asset (Motor vehicle) $36,389.40 Cr Lease liability $36,389.40

c. Dr Lease receivables $36,389.40 - Cr Motor vehicle $36,389.40

d. Dr Lease receivables $39,654.60 - Cr Motor vehicle $39,654.60