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Sheridan Corporation, which uses ASPE, manufactures replicators. On May 29, 2023, it leased to Bonita Limited a replicator that cost $266,000 to manufacture and usually
Sheridan Corporation, which uses ASPE, manufactures replicators. On May 29, 2023, it leased to Bonita Limited a replicator that cost $266,000 to manufacture and usually selis for $421,000. The lease agreement covers the replicator's 4 -year useful life and requires four equal annual rentals of $111,729each, beginning May 29,2023 . The equipment reverts to Sheridan at the end of the lease, at which time it is expected that the replicator will have a residual value of $46,000, which is not guaranteed by Bonita, the lessee. An interest rate of 10% is implicit in the lease agreement. Collectibility of the rentals is reasonably assured, and there are no important uncertainties concerning costs. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE. Prepare Sheridan's May 29,2023 journalentries. (List all debit entries before credit entries. Credit account titles are
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