Question
Senario 1 ABC Inc. leased a drilling equipment form a regional oil services company. The oil company purchased the drilling equipment from an international drilling
Senario 1
ABC Inc. leased a drilling equipment form a regional oil services company. The oil company purchased the drilling equipment from an international drilling equipment manufacturer at a cost of590,078 SR. The following information is given:
What is the Entry for the lease (Lessee side)
Given these information Lease term : 3 years Payment frequency: semiannual (at the end of the periods) Economic life of the asset Three years Payment amount: 120,000 SR Rate (lessors and the lowest rate) 12%
Lease Receivable 590.078
Cash 590,078
Leased equipment 590,078
Lease payable 590,078
Leased equipment 590,078
Cash 590,078
Lease Receivable 590.078
Lease Payable 590,078
Senario 1
ABC Inc. leased a drilling equipment form a regional oil services company. The oil company purchased the drilling equipment from an international drilling equipment manufacturer at a cost of590,078 SR. The following information is given:
What is the Entry for the lease (Lessee side)
Given these information
| Lease term : | 3 years |
| Payment frequency: | semiannual (at the end of the periods) |
| Economic life of the asset | Three years |
| Payment amount: | 120,000 SR |
| Rate (lessors and the lowest rate) | 12% |
Lease Receivable 590.078 Cash 590,078
| ||
Leased equipment 590,078 Lease payable 590,078 | ||
Leased equipment 590,078 Cash 590,078 | ||
Lease Receivable 590.078 Lease Payable 590,078
|
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Marketing Research
Authors: David A. Aaker, V. Kumar , George S. Day
8th Edition
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