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On januaru 1, 20x1, lessor enters into a 4 years lease of equipment. The equipment has a remaining useful life life of 15 years. The
On januaru 1, 20x1, lessor enters into a 4 years lease of equipment. The equipment has a remaining useful life life of 15 years. The annual lease payments, payablr at the end of each year are as follows:
20x1 P 100,000
20x2 120,000
20x3 140,000
20x4 160,000
As an inducement to enter to lease, Lessor granted Lessee the first six months of the lease as rent-free. Lessor receives a lease bonus of
P 20,000.
1. Provides all the journal entries.
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