Question
Green Forest entered into a 10-year finance lease with a guaranteed residual value. The present value of the annual lease payments = $43,000 The following
Green Forest entered into a 10-year finance lease with a guaranteed residual value.
The present value of the annual lease payments = $43,000
The following information is relevant to the residual value.
|
| Future Value | Present Value |
| Expected value of residual | $15,000 | $6,900 |
| Value guaranteed | $20,000 | $9,200 |
REQUIRED: Give the journal entry to record the inception of the lease.
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Financial And Managerial Accounting 9th Edition Bycrosson
Authors: Crosson
9th Edition
B00650OLZE
