Crane Corporation manufactures drones. On December 31, 2024, it leased to Blossom Company a drone that had cost $100,000 to manufacture. The lease agreement covers the 5-year useful life of the drone and requires 5 equal annual rentals of $40,200 payable each December 31, beginning December 31, 2024. An interest rate of 11% is implicit in the lease agreement. Collectibility of the entals is probable. Prepare Crane's December 31, 2024, journal entries. (List all debit entries before credit entries. Credit account titles are automatically Indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the mounts. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to O decimal places -8.5,275.) Click here to view factor tables.

Crane Corporation manufactures drones. On December 31, 2024, it leased to Blossom Company a drone that had cost $100,000 to manufacture. The lease agreement covers the 5-year useful life of the drone and requires 5 equal annual rentals of $40,200 payable each December 31, beginning December 31, 2024. An interest rate of 11% is implicit in the lease agreement. Collectibility of the entals is probable. Prepare Crane's December 31, 2024, journal entries. (List all debit entries before credit entries. Credit account titles are automatically Indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the mounts. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to O decimal places -8.5,275.) Click here to view factor tables.

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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