Question
The following are the characteristics of a lease: 1. Fair value of leased asset: 150,000 2. Lease payments: 25,500 3. Lease term : 7 4.
The following are the characteristics of a lease: 1. Fair value of leased asset: 150,000 2. Lease payments: 25,500 3. Lease term : 7 4. Payment frequency : Annual 5. Payment timing: End of year 6. Guaranteed residual value: None 7. Interest rate implicit in lease: 8% Determine the lease classification and record the journal entry for year 1.
If account is not required please enter 0.
net investment in lease: Cash: Asset: Lease revenue:
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Auditing A Practical Approach
Authors: Robyn Moroney, Fiona Campbell, Jane Hamilton
4th Edition
0730382648, 978-0730382645
