Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Recording Sales-Type Lease, Unguaranteed Residual Value-Lessor Flint Company leased equipment to Land Company for a five-year period. Flint paid $46,965 for the equipment, its current
Recording Sales-Type Lease, Unguaranteed Residual Value-Lessor Flint Company leased equipment to Land Company for a five-year period. Flint paid $46,965 for the equipment, its current carrying value (estimated useful life five years). The lease started on January 1, 2020. Flint uses a target rate of return of 8% in all lease contracts. The first payment was on January 1, 2020, and the accounting periods end on December 31. The equipment reverts to the lessor at the end of the lease term at which time the lessor estimates that the equipment will have an unguaranteed residual value of $2,000. Required a. Compute the annual payment for the lessor. - Note: Round answer to the nearest dollar. - Note: Do not use a negative sign with your answer. $ 0x Amortization Schedule Journal Entries b. Prepare an amortization schedule of the lease receivable for the lessor. - Note: Round each amount in the schedule to the nearest whole dollar. Use the rounded amount for later calculations in the schedule. Note: Include any net rounding difference to Lease Receivable in the Interest Revenue amount for Jan. 1, 2025. Lease Interest Reduction of Lease RITIUI LIZALIUIT SCICUU JUUllal LIILI ICS b. Prepare an amortization schedule of the lease receivable for the lessor. Note: Round each amount in the schedule to the nearest whole dollar. Use the rounded amount for later calculations in the schedule. Note: Include any net rounding difference to Lease Receivable in the Interest Revenue amount for Jan. 1, 2025. 0X Lease Interest Reduction of Lease Date Payment Revenue Lease Receivable Receivable Jan. 1, 2020 Jan. 1, 2020 $ Ox $ 0 $ 0 X Jan. 1, 2021 OX 0 x 0 x 0X Jan. 1, 2022 Jan. 1, 2023 OX 0x 0x 0x Jan. 1, 2024 0x 0x OX Jan. 1, 2025 OX OX 0x 0 Total 0x $ 0x $ 0x 0 x Check
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started