b. Net investment in the lease on January 1, 20x1 d. - Sales, Cost of sales, and Gross profit recognized o Gross investment in the lease on January 1, 20x1 Sales type lease 2. On January 1, 20x1, Soap Financing Co. leased a machine to Sanitizer, Inc. Information on the lease is shown below. Cost of machine P600,00 Useful life of machine 5 yeas 4 years P200,00 Lease term Annual rent payable ạt the end of each year Market rate of interest 10% Residual value at the end of the lease term PA0,00 term. The lease is classified as sales type lease. value is (1) Guaranteed and (2) Unguaranteed: a. Gross investment in the lease on January 1, 20x1 b. Net investment in the lease on January 1, 20x1 С. Soap Co. over the lease term on the lease
b. Net investment in the lease on January 1, 20x1 d. - Sales, Cost of sales, and Gross profit recognized o Gross investment in the lease on January 1, 20x1 Sales type lease 2. On January 1, 20x1, Soap Financing Co. leased a machine to Sanitizer, Inc. Information on the lease is shown below. Cost of machine P600,00 Useful life of machine 5 yeas 4 years P200,00 Lease term Annual rent payable ạt the end of each year Market rate of interest 10% Residual value at the end of the lease term PA0,00 term. The lease is classified as sales type lease. value is (1) Guaranteed and (2) Unguaranteed: a. Gross investment in the lease on January 1, 20x1 b. Net investment in the lease on January 1, 20x1 С. Soap Co. over the lease term on the lease
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![b. Net investment in the lease on January 1, 20x1
d. - Sales, Cost of sales, and Gross profit recognized o
Sales type lease
2. On January 1, 20x1, Soap Financing Co. leased a machine to
Sanitizer, Inc. Information on the lease is shown below.
Cost of machine
P600,00
Useful life of machine
5 years
4 years
Lease term
Annual rent payable ạt the end of each year
P200,00
Market rate of interest
10%
Residual value at the end of the lease term
P40,000
term. The lease is classified as sales type lease.
value is (1) Guaranteed and (2) Unguaranteed:
a. Gross investment in the lease on
January 1, 20x1
b. Net investment in the lease on January 1, 20×1
Soap Co. over the lease term
on the lease
E. Journal entries in Soap's books at the commencemen](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fce9d03d7-d0d3-40b9-8692-fa46e3a66249%2Fa8f72bd6-201f-47a9-af8a-27ef7b1cf33b%2Fbjxjxhj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:b. Net investment in the lease on January 1, 20x1
d. - Sales, Cost of sales, and Gross profit recognized o
Sales type lease
2. On January 1, 20x1, Soap Financing Co. leased a machine to
Sanitizer, Inc. Information on the lease is shown below.
Cost of machine
P600,00
Useful life of machine
5 years
4 years
Lease term
Annual rent payable ạt the end of each year
P200,00
Market rate of interest
10%
Residual value at the end of the lease term
P40,000
term. The lease is classified as sales type lease.
value is (1) Guaranteed and (2) Unguaranteed:
a. Gross investment in the lease on
January 1, 20x1
b. Net investment in the lease on January 1, 20×1
Soap Co. over the lease term
on the lease
E. Journal entries in Soap's books at the commencemen
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