A lease qualifies as a finance (sales-type) lease. Indicate an account to be used by the lessee, and anaccount to be used by the lessorSelect one:Account to be used by the lesseeRight of Use AssetAccount to be used by the lessorLease Receivablea.Ob.Account to be used by the lesseeUnearned RevenueAccount to be used by the lessorSales RevenueAccount to be used by the lesseeLease ExpenseAccount to be used by the lessorInterest Revenued. Account to be used by the lesseOLease LiabilityAccount to be used by the lessorAmortization ExpenseAccount to be used by the lesseeAmortization ExpenseAccount to be used by the lessorInterest Expensee.

Accounting Entry Made by lessee Dr. Right of Use Assets Cr. Lease Liability Accounting…

A lease qualifies as a finance (sales-type) lease. Indicate an account to be used by the lessee, and an account to be used by the lessor Select one: Account to be used by the lessee Right of Use Asset Account to be used by the lessor Lease Receivable a. O b. Account to be used by the lessee Account to be used by the lessor Sales Revenue Unearned Revenue Account to be used by the lessee Lease Expense Account to be used by the lessor Interest Revenue Oc. O d. Account to be used by the lessee Lease Liability Account to be used by the lessor Amortization Expense Account to be used by the lessee Amortization Expense Account to be used by the lessor Interest Expense e.

A lease qualifies as a finance (sales-type) lease. Indicate an account to be used by the lessee, and an account to be used by the lessor Select one: Account to be used by the lessee Right of Use Asset Account to be used by the lessor Lease Receivable a. O b. Account to be used by the lessee Account to be used by the lessor Sales Revenue Unearned Revenue Account to be used by the lessee Lease Expense Account to be used by the lessor Interest Revenue Oc. O d. Account to be used by the lessee Lease Liability Account to be used by the lessor Amortization Expense Account to be used by the lessee Amortization Expense Account to be used by the lessor Interest Expense e.

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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Concept explainers

Leasing

Leasing is a contractual arrangement in which someone (a lessee) pays the owner (or lessor) of a building, land, vehicle, or other asset for the use of that asset. The lease is the agreement between lessee and lessor.

Question

A lease qualifies as a finance (sales-type) lease. Indicate an account to be used by the lessee, and an
account to be used by the lessor
Select one:
Account to be used by the lessee
Right of Use Asset
Account to be used by the lessor
Lease Receivable
a.
Ob.
Account to be used by the lessee
Unearned Revenue
Account to be used by the lessor
Sales Revenue
Account to be used by the lessee
Lease Expense
Account to be used by the lessor
Interest Revenue
d. Account to be used by the lesseO
Lease Liability
Account to be used by the lessor
Amortization Expense
Account to be used by the lessee
Amortization Expense
Account to be used by the lessor
Interest Expense
e.

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