Hansaben TB Problem 15-200 (Static) Amelia Company leased a warehouse from...Amelia Company leased a warehouse from Island Industries on July 1, 2024, in a finance lease. The present value of the leasepayments discounted at 10% was $162,217. Ten annual lease payments of $24,000 are due each July 1, beginning July 1, 2024. Islandhad constructed the building recently for $132,000 and its retail fair value was $162,217.Required:Assuming that control of the warehouse building is transferred to Amelia Company at the beginning of the lease. Prepare the twojournal entries to record the lease by Island on July 1, 2024.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.No12DateJuly 01, 2024July 01, 2024Lease receivableCost of goods soldBuildingCashLease receivableAnswer is not complete.General Journal333Debit162,217✔24,000✔Credit30,217 X132,000 ✓24,000

Lease is the agreement between lessee and lessor. Lessor gives his asset to lessee for use. Lessee…

as $162,217. Ten annual lease payments of $24,000 are due each July 1, beginning ecently for $132,000 and its retail fair value was $162,217. arehouse building is transferred to Amelia Company at the beginning of the lease. ase by Island on July 1, 2024. or a transaction/event, select "No journal entry required" in the first account field eceivable of goods sold ling e receivable Answer is not complete. General Journal Debit 162,217 24,000 Credit 30,217 x 132,000 24,000