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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

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

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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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 lease payments discounted at 10% was $162,217. Ten annual lease payments of $24,000 are due each July 1, beginning July 1, 2024. Island had 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 two journal 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. No 1 2 Date July 01, 2024 July 01, 2024 Lease receivable Cost of goods sold Building Cash Lease receivable Answer is not complete. General Journal 333 Debit 162,217✔ 24,000✔ Credit 30,217 X 132,000 ✓ 24,000
Transcribed Image Text: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 lease payments discounted at 10% was $162,217. Ten annual lease payments of $24,000 are due each July 1, beginning July 1, 2024. Island had 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 two journal 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. No 1 2 Date July 01, 2024 July 01, 2024 Lease receivable Cost of goods sold Building Cash Lease receivable Answer is not complete. General Journal 333 Debit 162,217✔ 24,000✔ Credit 30,217 X 132,000 ✓ 24,000
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