Skysong Company leases an automobile with a fair value of13,568 from John Simon Motors, Inc., on the following terms: 1. Non-cancelable term of 50 months. 2. Rental of S270 per month (at the beginning of each month) (The present value at 0.5% per month is $11,979.) 3. Skysong guarantees a residual value of1,700 (the present alue at 0.5% per month is s 1,325]. Skysong expects the probable residual value to be1,700 at the end of the lease term. 4, Estimated economic fe of the automobile is 60 months Skysong's incremental borrowinc rate is 6% a vear io.5% a mth). Simon's implicit rate is unknown. Click here to view the factor table (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Your answer is partially corred. Try agair Based on the original fact pattern, record the lease on Skysong's baoks at the date of commencement. Credit account titles are automaticaly indented when amount is entered. Do not indent manually.) Account Titles and Explanation Right-of-USB Asset Debit Credit 13304 Lease Liability Your answer is partially corred. Try again. Record the first mont s lease payment at oor mencement o tre lease Account Titles and Explanation Lease Liability credaccount titles are automatically indented when amount is entered. Do not indent manual / Round answers to 0 decimal places, e 9-5,275 Debit Credit Cash Your answer is partially correcdt. Try again. Recard the second month's lease payment. (Credit account titles are auutomaticaily indented when amount is entered. Do not indent manually, Round answers to o decimal places, e.g. 5,275.) Account Titles and Explanation Lease Liability Debit Credit 137 Interest Expense Cash 270 Your answer is partially correcdt. Try again. Record the first month's amortization on Skysong's books (assume straight-line). (Credit account titles are automatically indented when amount is entered. Do not indent manualy. Round ansrers to 2 decimal places, e.g. 5,275.25.) Account Titles and Explanation Amortization Expense Deblt Credit 13304 Right-af-Use Asset 1330 Skysong Company leases an automobile with a fair value of13,568 from John Simon Motors, Inc., on the following terms: 1. Non-cancelable term of 50 months. 2. Rental of S270 per month (at the beginning of each month) (The present value at 0.5% per month is $11,979.) 3. Skysong guarantees a residual value of1,700 (the present alue at 0.5% per month is s 1,325]. Skysong expects the probable residual value to be1,700 at the end of the lease term. 4, Estimated economic fe of the automobile is 60 months Skysong's incremental borrowinc rate is 6% a vear io.5% a mth). Simon's implicit rate is unknown. Click here to view the factor table (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Your answer is partially corred. Try agair Based on the original fact pattern, record the lease on Skysong's baoks at the date of commencement. Credit account titles are automaticaly indented when amount is entered. Do not indent manually.) Account Titles and Explanation Right-of-USB Asset Debit Credit 13304 Lease Liability Your answer is partially corred. Try again. Record the first mont s lease payment at oor mencement o tre lease Account Titles and Explanation Lease Liability credaccount titles are automatically indented when amount is entered. Do not indent manual / Round answers to 0 decimal places, e 9-5,275 Debit Credit Cash Your answer is partially correcdt. Try again. Recard the second month's lease payment. (Credit account titles are auutomaticaily indented when amount is entered. Do not indent manually, Round answers to o decimal places, e.g. 5,275.) Account Titles and Explanation Lease Liability Debit Credit 137 Interest Expense Cash 270 Your answer is partially correcdt. Try again. Record the first month's amortization on Skysong's books (assume straight-line). (Credit account titles are automatically indented when amount is entered. Do not indent manualy. Round ansrers to 2 decimal places, e.g. 5,275.25.) Account Titles and Explanation Amortization Expense Deblt Credit 13304 Right-af-Use Asset 1330
