call for monthly payments of $750, beginning on May 21, 2021. Dumfries reports using On January 1, 2021, InSynch Ltd. entered into an agreement to lease 60 comput- Tech Electronics. The terms of the lease agreement require three annual payment including 5.5% interest), beginning on December 31, 2021. The present value payments is $118,000 and the market value of the computers is $120,000. InSynch using IFRS.
call for monthly payments of $750, beginning on May 21, 2021. Dumfries reports using On January 1, 2021, InSynch Ltd. entered into an agreement to lease 60 comput- Tech Electronics. The terms of the lease agreement require three annual payment including 5.5% interest), beginning on December 31, 2021. The present value payments is $118,000 and the market value of the computers is $120,000. InSynch using IFRS.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Please help me
Transcribed Image Text:E15.20 (LO 6) AP Two independent situations follow:
1. Ready Car Rental leased a car to Dumfries Company for three months. Terms of the lease agreement
call for monthly payments of $750, beginning on May 21, 2021. Dumfries reports using ASPE.
2. On January 1, 2021, InSynch Ltd. entered into an agreement to lease 60 computers from Hi-
Tech Electronics. The terms of the lease agreement require three annual payments of $43,737
(including 5.5% interest), beginning on December 31, 2021. The present value of the three
payments is $118,000 and the market value of the computers is $120,000. InSynch Ltd. reports
using IFRS.
Instructions
Prepare the journal entry, if any, that each company must make to record the lease agreement.
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