Question
On 1 July 2020, Brooklyn Ltd (lessor) leased Equipment to New Ltd (lessee). The lease agreement contained the following: Annual Lease receivable on 1 July
On 1 July 2020, Brooklyn Ltd (lessor) leased Equipment to New Ltd (lessee).
The lease agreement contained the following:
| Annual Lease receivable on 1 July (in advance) | $50,000 |
| Lease Receivable on 1 July 2020 measured at NPV net of initial lease receipts | $176,992 |
What would be the journal entries on 1 July 2020 for the lessor (Brooklyn Ltd)?
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Managerial Accounting Tools For Business Decision Making
Authors: Weygandt, Kimmel, Kieso
4th Edition
0470478535, 978-0470478530
