Eye Deal Optometry leased vision-testing equipment from Insight Machines on January 1, 2024. Insight Machines manufactured theequipment at a cost of $370,000 and lists a cash selling price of $425.235. Appropriate adjusting entries are made quarterly.Note: Use tables, Excel, or a financial calculator. (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1)Related Information:Lease termQuarterly lease paymentsEconomic life of assetInterest rate charged by the lessorRequired:1. Prepare appropriate entries for Eye Deal to record the arrangement at its beginning, January 1, 2024, and on March 31, 2024.2. Prepare appropriate entries for Insight Machines to record the arrangement at its beginning. January 1, 2024, and on March 31,2024.NoAnswer is not complete.Complete this question by entering your answers in the tabs below.1Required 1 Required 2Prepare appropriate entries for Eye Deal to record the arrangement at its beginning, January 1, 2024, and on March 31, 2024.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round yourintermediate calculations and final answer to the nearest whole dollar.234DateJanuary 01, 2024 Right-of-use assetLease payableJanuary 01, 2024 Lease payableCashMarch 31, 20245years (20 quarterly periods)at January 1, 2024, and at March 31, June 30, September 30, and December 31thereafteryearsMarch 31, 2024$27,750Lease payableInterest expenseCash512%Amortization expenseRight-of-use assetGeneral Journal3333333Debit425,235✔27,750✔Credit425,23527,75027,750

A lease may classified as a capital lease or an operating lease from a lessor's point of view. A…

Eye Deal Optometry leased vision-testing equipment from Insight Machines on January 1, 2024. Insight Machines manufactured the equipment at a cost of $370,000 and lists a cash selling price of $425,235. Appropriate adjusting entries are made quarterly. Note: Use tables, Excel, or a financial calculator. (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) Related Information: Lease term 5 years (20 quarterly periods) at January 1, 2824, and at March 31, June 30, September 30, and December 31 thereafter $27,758 years Quarterly lease payments Economic life of asset Interest rate charged by the lessor Required: 1. Prepare appropriate entries for Eye Deal to record the arrangement at its beginning. January 1, 2024, and on March 31, 2024. 2. Prepare appropriate entries for Insight Machines to record the arrangement at its beginning. January 1, 2024, and on March 31, 2024. 5 12%

Eye Deal Optometry leased vision-testing equipment from Insight Machines on January 1, 2024. Insight Machines manufactured the equipment at a cost of $370,000 and lists a cash selling price of $425,235. Appropriate adjusting entries are made quarterly. Note: Use tables, Excel, or a financial calculator. (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) Related Information: Lease term 5 years (20 quarterly periods) at January 1, 2824, and at March 31, June 30, September 30, and December 31 thereafter $27,758 years Quarterly lease payments Economic life of asset Interest rate charged by the lessor Required: 1. Prepare appropriate entries for Eye Deal to record the arrangement at its beginning. January 1, 2024, and on March 31, 2024. 2. Prepare appropriate entries for Insight Machines to record the arrangement at its beginning. January 1, 2024, and on March 31, 2024. 5 12%

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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Complete Electronics Inc. sells a point - of -sale computer with a two- year service contract. Complete collects $3,500 cash for the selling price of the computer and $648 for the two - year service contract. How is revenue recognized? O A. Complete will record Sales Revenue of $3.500 when the computer delivered and will record revenue for the service contract as service calls are made. O B. Complete will record Sales Revenue of $2,074 per year for two years. O C. Complete will record Sales Revenue of $4,148 when the computer is delivered to the customer. O D. Complețe will record Sales Revenue of $3,500 when the computer is delivered and Service Revenue of $27 per month for 24 months.
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Chance Enterprises leased equipment from Third Bank Leasing on January 1, 2018. Third Bank purchased the equipment at a cost of $1,400,000. Chance elected the short-term lease option. Appropriate adjusting entries are made annually. Related Information: 1 year (4 quarterly periode) $56,000 at Jan. 1, 2018, and at Mar. 31, June 30, and Sept. 30. 5 years Lease term Quarterly lease payments Economic lite of anset Interent rate charged by the lessor Required: Prepare appropriate entries for Chance from the beginning of the lease through December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amount.) View transaction list
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