18) The Thomson Company (lessee) leased equipment from Columbus Industries on January 1, 2021. Columbus(lessor) manufactured the equipment at a cost of $270,000. Other information: Lease term Annual payments Life of asset Lessor's implicit interest rate Lessee's incremental rate 3 years $120,000 beginning Jan. 1, 2021 3 years 8% 9% Required: Round your answers to the nearest whole dollar amounts.

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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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18) The Thomson Company (lessee) leased equipment from Columbus Industries on January 1,
2021. Columbus(lessor) manufactured the equipment at a cost of $270,000.
Other information:
Lease term
Annual payments
Life of asset
Lessor's implicit interest rate
Lessee's incremental rate
3 years
$120,000 beginning Jan. 1, 2021
3 years
8%
9%
Required:
Round your answers to the nearest whole dollar amounts.
1. Calculate the amount of lease receivable that Columbus would report in this sales-type lease.
Round to nearest dollar. Show calculations. If not, no credit.
2. Prepare the appropriate journal entries for Columbus on January 1, 2021. Round to nearest
dollar.
3. Prepare the adjusting journal entry for Columbus on December 31, 2021. Round to nearest
dollar.
Transcribed Image Text:18) The Thomson Company (lessee) leased equipment from Columbus Industries on January 1, 2021. Columbus(lessor) manufactured the equipment at a cost of $270,000. Other information: Lease term Annual payments Life of asset Lessor's implicit interest rate Lessee's incremental rate 3 years $120,000 beginning Jan. 1, 2021 3 years 8% 9% Required: Round your answers to the nearest whole dollar amounts. 1. Calculate the amount of lease receivable that Columbus would report in this sales-type lease. Round to nearest dollar. Show calculations. If not, no credit. 2. Prepare the appropriate journal entries for Columbus on January 1, 2021. Round to nearest dollar. 3. Prepare the adjusting journal entry for Columbus on December 31, 2021. Round to nearest dollar.
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