Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Il Youtube httpswww.disne... D2L Notixwley Plus Googe Docs Apply for a U.S.V. Auding Fall 2021 Business writing a 21 - Homework B Question 7 of

image text in transcribed
image text in transcribed
Il Youtube httpswww.disne... D2L Notixwley Plus Googe Docs Apply for a U.S.V. Auding Fall 2021 Business writing a 21 - Homework B Question 7 of 9 2.67/3 in Your answer is partially correct Prepare the journal entry at commencement of the lease for Sharrer, assuming (1) Sharrer does not know Crane's implicitate (Sharrer's incremental borrowing rate is 9%), and (2) Sharrer incurs initial directs costs of $13.500. (Credit account titles are automatically Indented when amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the factor table provided and roun final answers to decimal places eg. 5,275) Debit Credit Date Account Titles and Explanation 1/1/20 Lease Llability Cast e Textbook and Media Solution List of Accounts Attempts: 4 of 10 used Sobot Anne Savelor Later MacBook Air - Homework B Question 7 of 9 2.67/3 View Policies Show Attempt History Current Attempt in Progress Crane Leasing Company leases a new machine to Sharrer Corporation. The machine has a cost of $65,000 and fair value of $85,500. Under the 3-year, non-cancelable contract, Sharrer will receive title to the machine at the end of the lease. The machine has a 3-year useful life and no residual valuu. The lease was signed on January 1, 2020. Crane expects to earn an 8% return on its investment, and this implicitrate is known by Sharrer. The annual rentals are payable on each December 31, beginning December 31, 2020, Click here to view factor tables. (b) Your Answer Correct Answer Your answer is correct. Prepare an amortization schedule that would be suitable for both the lessor and the lessee and that covers all the years involved, (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to decimal places es. 5,275) Reduction of Principal Receivable) Date Rent Receipt/Payment Interest Revenue/Expense Il Youtube httpswww.disne... D2L Notixwley Plus Googe Docs Apply for a U.S.V. Auding Fall 2021 Business writing a 21 - Homework B Question 7 of 9 2.67/3 in Your answer is partially correct Prepare the journal entry at commencement of the lease for Sharrer, assuming (1) Sharrer does not know Crane's implicitate (Sharrer's incremental borrowing rate is 9%), and (2) Sharrer incurs initial directs costs of $13.500. (Credit account titles are automatically Indented when amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the factor table provided and roun final answers to decimal places eg. 5,275) Debit Credit Date Account Titles and Explanation 1/1/20 Lease Llability Cast e Textbook and Media Solution List of Accounts Attempts: 4 of 10 used Sobot Anne Savelor Later MacBook Air - Homework B Question 7 of 9 2.67/3 View Policies Show Attempt History Current Attempt in Progress Crane Leasing Company leases a new machine to Sharrer Corporation. The machine has a cost of $65,000 and fair value of $85,500. Under the 3-year, non-cancelable contract, Sharrer will receive title to the machine at the end of the lease. The machine has a 3-year useful life and no residual valuu. The lease was signed on January 1, 2020. Crane expects to earn an 8% return on its investment, and this implicitrate is known by Sharrer. The annual rentals are payable on each December 31, beginning December 31, 2020, Click here to view factor tables. (b) Your Answer Correct Answer Your answer is correct. Prepare an amortization schedule that would be suitable for both the lessor and the lessee and that covers all the years involved, (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to decimal places es. 5,275) Reduction of Principal Receivable) Date Rent Receipt/Payment Interest Revenue/Expense

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting And Finance For Non-Specialists

Authors: Eddie McLaney, Peter Atrill

3rd Edition

9780273646327

More Books

Students also viewed these Accounting questions