On $1$ January $20$X$1,$ Canada Leasing Inc. acquired an asset on behalf of Magnum Ltd$.$ for $$320,000.$ Canada Leasing and Magnum enter into a six$-$year lease for the asset, effective $1$ January $20$X$1,$ with equal payments made by Magnum at the beginning of each lease year. Canada Leasing will earn $12\%($before taxes$)$ on the lease. Canada Leasing has a $31$ December fiscal year$-$end. $($PV of $$1,$ PVA of $$1,$ and PVAD of $$1.)($Use appropriate factor$($s$)$ from the tables provided.$)$

$\frac{4}{10}$ points awarded

Scored

Scored

Required:

Determine the amount of each lease payment. $($Round your answer to $2$ decimal places.$)$

Annual payments

$

$69,493\mathrm{.}01$

Make the journal entries that would appear in Canada Leasing Inc.$\text{'}$s accounts for $20$X$1,20$X$2,$ and $20$X$3,$ using the net method of fecording: $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.$)$

$\backslash$table$[[$No$,$Date,General Journal,Debit,Credit,$],[1,1$ January $20$X$1,$Lease receivable,,$320,000,],[,,$Cash,,,$320,000],[,,,,,],[2,1$ January $20$X$1,$Cash,,,$],[,,$Lease receivable,,$30,0610,],[,,,,,30,061]]$

Back

This window shows your responses and what was marked correct and incorrect from your previous attempt.

$\frac{4}{10}$

points awarded

Scored

$\backslash$table$[[,-,L,,,],[2,1$ January $201,$Cash,$\frac{O}{?},69,493,],[2,+8,$Lease receivable,grad,$-,69,493vv$