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having trouble Question 8 of 10 0.87/1 View Policies Show Attempt History Current Attempt in Progress - Your answer is partially correct Marigold Corporation enters
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Question 8 of 10 0.87/1 View Policies Show Attempt History Current Attempt in Progress - Your answer is partially correct Marigold Corporation enters into a 7-year lease of equipment on December 31, 2019, which requires 7 annual payments of $37.500 each beginning December 31, 2019. In addition, Marigold guarantees the lessor a residual value of $18,700 at the end of the lease. However, Marigold believes it is probable that the expected residual vakie at the end of the lease term will be $8,700. The equipment has a useful life of 7 years. Assume that for Lost Ark Company, the lessor, collectibility of lease payments is probatike and the carrying amount of the equipment is $170,000 Prepare Lost Ark's 2019 and 2020 journal entries, assuming the implicit rate of the lease is 9% and this is known to Marigold. (Credit account titles are automatically indented when amount is entered. Do not indent manually. For calculation purposes, use decimal places as displayed in the factor table provided and round final answers to decimal placeses. 5.275. Recordjoumal entries in the order presented in the problem.) Click here to view factor tables Credit Debit ENG SOU 5/15/12 ate Type here to search Account Titles and Explanation RI o 13 O ly Credit Debit ste Account Titles and Explanation 188736 31.2019 Lease Receivable 170000 Cost of Goods Sold 193495 Sales Revenue 170000 Inventory (To record the lease) 37500 Cash 37500 11 2019 Lease Receivable SOM 2002 (To record receipt of lease payment) O Type here to search 0.87/1 III Step by Step Solution
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