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Glaus Leasing Company agrees to lease equipment to Jensen Corporation on January 1 , 2 0 2 4 . The following information relates to the
Glaus Leasing Company agrees to lease equipment to Jensen Corporation on January The following information relates to the lease agreement.
The term of the lease is years with no renewal option, and the machinery has an estimated economic life of years.
The cost of the machinery is $ and the fair value of the asset on January is $
At the end of the lease term, the asset reverts to the lessor and has a guaranteed residual value of $ Jensen estimates that the expected residual value at the end of the lease term will be $ Jensen amortizes all of its leased equipment on a straightline basis.
The lease agreement requires equal annual rental payments each January beginning on January
The collectibility of the lease payments is probable.
The implicit rate of interest is
Compute lease payment show lessor's calculation:
Complete amortization schedule:
Cash Pmt Effective Interest Principle reduction Outstanding Balance
Prepare lessee's and lessor's journal entries on the following dates:
Jensen Lessee Glaus Lessor
January
December
January
MUST use Excel formulas for all of the calculations!please include it it as the answer.
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