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e 1 5 - 1 2 , Lessee and lessor; lessee guaranteed residual value L 0 1 5 - 2 , L 0 1 5
e Lessee and lessor; lessee guaranteed residual value L L On January Ghosh Industries leased a highperformance conveyer to Karrier Company for a fouryear period ending December at which time possession of the leased asset will revert back to Ghosh. The equipment cost Ghosh $ and has an expected useful life of five years. Ghosh expects the residual value at December will be $ Negotiations led to the lessee guaranteeing a $ residual value. Equal payments under the financesalestype lease are $ and are due on December of each year with the first payment being made on December Karrier is aware that Ghosh used a interest rate when calculating lease payments. Required: Prepare the appropriate entries for both Karrier and Ghosh on January to record the lease.
e
Lessee and
lessor; lessee
guaranteed
residual value
L L
On January Ghosh Industries leased a highperformance conveyer to Karrier Company for a fouryear period ending December at which time possession of the leased asset will revert back to Ghosh.
The equipment cost Ghosh $ and has an expected useful life of five years.
Ghosh expects the residual value at December will be $
Negotiations led to the lessee guaranteeing a $ residual value.
Equal payments under the financesalestype lease are $ and are due on December of each year with the first payment being made on December
Karrier is aware that Ghosh used a interest rate when calculating lease payments.
Required:
Prepare the appropriate entries for both Karrier and Ghosh on January to record the lease.
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