Terms of a lease agreement and related facts were a The lease asset had a retail cash selling price of $144,000 Its useful life was six years with no residual value (straight line depreciation) b Annual lease payments at the beginning of each year were $28,310, beginning January 1 c Lessor's implicit rate when calculating annual rental payments was 7 d Costs of $3,562 for legal fees for the lease execution were the responsibility of the lessor Required Prepare the appropriate entries for the lessor to record the lease, the initial payment at its beginning, and at the December 31 fiscal year end under each of the following three independent assumptions 1 The lease term is three years and the lessor paid $144,000 to acquire the asset (operating lease) 2 The lease term is six years and the lessor paid $144,000 to acquire the asset Also assume that adjusting the lease receivable (net investment) by initial direct costs reduces the effective rate of interest to 6 3 The lease term is six years and the lessor paid $100,000 to acquire the asset Terms of a lease agreement and related facts were a The lease asset had a retail cash selling price of $144,000 Its useful life was six years with no residual value (straight line depreciation) b Annual lease payments at the beginning of each year were $28,310, beginning January 1 c Lessor's implicit rate when calculating annual rental payments was 7 d Costs of $3,562 for legal fees for the lease execution were the responsibility of the lessor Required Prepare the appropriate entries for the lessor to record the lease, the initial payment at its beginning, and at the December 31 fiscal year end under each of the following three independent assumptions 1 The lease term is three years and the lessor paid $144,000 to acquire the asset (operating lease) 2 The lease term is six years and the lessor paid $144,000 to acquire the asset Also assume that adjusting the lease receivable (net investment) by initial direct costs reduces the effective rate of interest to 6 3 The lease term is six years and the lessor paid $100,000 to acquire the asset

Question

Terms of a lease agreement and related facts were  a  The lease asset had a retail cash selling price of $144,000  Its useful life was six years with no residual value (straight  line depreciation)  b  Annual lease payments at the beginning of each year were $28,310, beginning January 1  c  Lessor's implicit rate when calculating annual rental payments was 7   d  Costs of $3,562 for legal fees for the lease execution were the responsibility of the lessor  Required  Prepare the appropriate entries for the lessor to record the lease, the initial payment at its beginning, and at the December 31 fiscal year end under each of the following three independent assumptions  1  The lease term is three years and the lessor paid $144,000 to acquire the asset (operating lease)  2  The lease term is six years and the lessor paid $144,000 to acquire the asset  Also assume that adjusting the lease receivable (net investment) by initial direct costs reduces the effective rate of interest to 6   3  The lease term is six years and the lessor paid $100,000 to acquire the asset  Terms of a lease agreement and related facts were  a  The lease asset had a retail cash selling price of $144,000  Its useful life was six years with no residual value (straight  line depreciation)  b  Annual lease payments at the beginning of each year were $28,310, beginning January 1  c  Lessor's implicit rate when calculating annual rental payments was 7   d  Costs of $3,562 for legal fees for the lease execution were the responsibility of the lessor  Required  Prepare the appropriate entries for the lessor to record the lease, the initial payment at its beginning, and at the December 31 fiscal year end under each of the following three independent assumptions  1  The lease term is three years and the lessor paid $144,000 to acquire the asset (operating lease)  2  The lease term is six years and the lessor paid $144,000 to acquire the asset  Also assume that adjusting the lease receivable (net investment) by initial direct costs reduces the effective rate of interest to 6   3  The lease term is six years and the lessor paid $100,000 to acquire the asset

Accepted Answer

The Answer is in the image, click to view ...

Question

Terms of a lease agreement and related facts were: a. The lease asset had a retail cash selling price of $144,000. Its useful life was

Step by Step Solution

Step: 1

Get Instant Access to Expert-Tailored Solutions

Step: 2

Step: 3

Ace Your Homework with AI

Recommended Textbook for

Accounting Information Systems

Students also viewed these Accounting questions

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question