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6 years (24 quarters) al value; no BPO life of machine 6 years interest rate and lessee's incremental borrowing rate e of asset $570,000 ropriate entries for both IGA and Elf Leasing from the beginning of the lease through the secon ization is recorded at the end of each fiscal year (December 31). (If no entry is required for a tra entry required" in the first account field. Round your answers to the nearest whole dollar am

6 years (24 quarters) al value; no BPO life of machine 6 years interest rate and lessee's incremental borrowing rate e of asset $570,000 ropriate entries for both IGA and Elf Leasing from the beginning of the lease through the secon ization is recorded at the end of each fiscal year (December 31). (If no entry is required for a tra entry required" in the first account field. Round your answers to the nearest whole dollar am

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Elf Leasing purchased a machine for $570,000 and leased it to IGA, Inc. on January 1, 2021. Lease description: Quarterly rental payments $29,546 at beginning of each period 6 years (24 quarters) Lease term No residual value; no BPO Economic life of machine 6 years Implicit interest rate and lessee's incremental borrowing rate 8% Fair value of asset $570,000 Required: Prepare appropriate entries for both IGA and Elf Leasing from the beginning of the lease through the second rental payment on April 1, 2021. Amortization is recorded at the end of each fiscal year (December 31). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amounts.) View transaction list Journal entry worksheet 2 3 4 6 > Record the payment of lease rental on equipment on April 01, 2021 in the books of IGA (Lessee). Note: Enter debits before credits. Date General Journal Debit Credit April 01, 2021 Record entry Clear entry View general journal
Transcribed Image Text:Elf Leasing purchased a machine for $570,000 and leased it to IGA, Inc. on January 1, 2021. Lease description: Quarterly rental payments $29,546 at beginning of each period 6 years (24 quarters) Lease term No residual value; no BPO Economic life of machine 6 years Implicit interest rate and lessee's incremental borrowing rate 8% Fair value of asset $570,000 Required: Prepare appropriate entries for both IGA and Elf Leasing from the beginning of the lease through the second rental payment on April 1, 2021. Amortization is recorded at the end of each fiscal year (December 31). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amounts.) View transaction list Journal entry worksheet 2 3 4 6 > Record the payment of lease rental on equipment on April 01, 2021 in the books of IGA (Lessee). Note: Enter debits before credits. Date General Journal Debit Credit April 01, 2021 Record entry Clear entry View general journal
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