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P21.10B (LO 2,4) (Lessee Computations and Entries, Finance Lease with Unguaranteed Residual Value) Assume the same data as in P21.9B, with Rodeo Chicken having an
P21.10B (LO 2,4) (Lessee Computations and Entries, Finance Lease with Unguaranteed Residual Value) Assume the same data as in P21.9B, with Rodeo Chicken having an incremental borrowing rate of 5%. Instructions (Round all numbers to the nearest dollar.) (a) Discuss the nature of this lease in relation to the lessee, and compute the amount of the initial lease liability. (b) Prepare a 9-year lease amortization schedule. (c) Prepare all of the lessee's journal entries for the first year. Assume straight-line depreciation. P21.10B (LO 2,4) (Lessee Computations and Entries, Finance Lease with Unguaranteed Residual Value) Assume the same data as in P21.9B, with Rodeo Chicken having an incremental borrowing rate of 5%. Instructions (Round all numbers to the nearest dollar.) (a) Discuss the nature of this lease in relation to the lessee, and compute the amount of the initial lease liability. (b) Prepare a 9-year lease amortization schedule. (c) Prepare all of the lessee's journal entries for the first year. Assume straight-line depreciation
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