Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Warren Marina owns a large marina that contains numerous boat slips of various sizes. Warren contracts with boat owners to provide slips to house the

image text in transcribed
Warren Marina owns a large marina that contains numerous boat slips of various sizes. Warren contracts with boat owners to provide slips to house the customers' boats. Lucky Fisherman Fleet contracted with Warren to provide space for four of its fishing boats. The contract specifies that Lucky Fisherman's boats will be kept in identified slips in the marina. The agreement includes the requirement that Warren provide 45-foot slips per boat for a three-year period, space that Lucky Fisherman can modify with fenders, docklines, and equipment needed to conduct its fishing business, Warren cannot switch locations of the boats or modify the slips without Lucky Fisherman's consent. Lucky Fisherman Fleet paid $24,000 on March 1, 2021, for the first year's accommodations. The market rate of Interest is 5%. (FV of $1. PV of $1. EVA of $1. PVA of S1, FVAD of S1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: Prepare the appropriate entry(s) for Lucky Fisherman Fleet at March 1, the commencement of the agreement (if no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to the nearest whole dollar amount.) Answer is complete but not entirely correct. Date General Journal No 1 Credit March 01, 2021 Right-of-useet Lease payable Debit 68,828 68,828 2 March 01, 2021 Lease pilable Cash 24.000 OS 24,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Prescription Audit And Client Satisfaction A Health Service Research Study Based On Outdoor Patients

Authors: Amitabha Chattopadhyay

1st Edition

3843355541, 978-3843355544

More Books

Students also viewed these Accounting questions