Record the sale of airplane

Record the lease

Record the cash payment .

Record the interest expense.

Record the depreciation expense.

Record any necessary adjustments to depreciation

value: 6.00 points To raise operating funds, Signal Aviation sold an airplane on January 1, 2013, to a finance company for $990,000. Signal immediately leased the plane back for a 12-year period, at which time ownership of the airplane will transfer to Signal. The airplane has a fair value of $1,020,000. Its cost and its book value were $730,000. Its useful life is estimated to be 14 years. The lease requires Signal to make payments of $142,699 to the finance company each January 1. Signal depreciates assets on a straight-line basis. The lease has an implicit rate of 12%. Required 1. Prepare the appropriate entries for Signal on January 1, 2013, to record the sale-leaseback. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.) view transaction list view general journal Journal Entry Worksheet 033 Record the sale of the airplane Date General Journal Debit Credit January 01, 2013 *Enter debits before credits done r entry record entry