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I need the lease payable amount here is the original entry it has to be adjusted and here is the additional info 552 SERVICE COSTS-DIRECT-LEASE
I need the lease payable amount here
is the original entry it has to be adjusted and here is the additional info
I need the lease payable amount here
is the original entry it has to be adjusted and here is the additional info
552 SERVICE COSTS-DIRECT-LEASE EXPENSE-TRUCKS 28,774 101 CASH To record lease payment on new truck 19. We noticed that you made a large lease payment for a truck on February 1 this year. Is there a new long-term lease on a truck? If so, we will need a copy of the lease since we need to determine if this is another operating lease or if it is instead a finance lease. To determine that, we need to know the lease term, the interest rate on the lease, whether ownership will transfer at the end of the lease, and the useful life and fair value of the truck on the date of the lease. On February 1, 203, we leased a third truck that is tooled to our specifications. Rick determined that due to the special tooling, we are better off in a lease situation this time, versus purchasing it and having to worry about selling it later. The estimated useful life of the truck is six years, the lease term is five years, and the interest rate is 4.5%. Rick and the dealer agreed on a price of $132,000. The truck will be returned to the dealer at the end of the lease with the understanding that we do not have to guarantee a residual value. 552 SERVICE COSTS-DIRECT-LEASE EXPENSE-TRUCKS 28,774 101 CASH To record lease payment on new truck 19. We noticed that you made a large lease payment for a truck on February 1 this year. Is there a new long-term lease on a truck? If so, we will need a copy of the lease since we need to determine if this is another operating lease or if it is instead a finance lease. To determine that, we need to know the lease term, the interest rate on the lease, whether ownership will transfer at the end of the lease, and the useful life and fair value of the truck on the date of the lease. On February 1, 203, we leased a third truck that is tooled to our specifications. Rick determined that due to the special tooling, we are better off in a lease situation this time, versus purchasing it and having to worry about selling it later. The estimated useful life of the truck is six years, the lease term is five years, and the interest rate is 4.5%. Rick and the dealer agreed on a price of $132,000. The truck will be returned to the dealer at the end of the lease with the understanding that we do not have to guarantee a residual value
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