GENERAL JOURNAL Score: 57/101 POST. REF DEBIT DATE CREDIT ACCOUNT TITLE 243,200.00 Jan. 1 Lease Receivable Cost of Goods Sold 145,500.00 2 169,138.21 Sales Revenue 3 Unearned Interest 74,061.79 4 145,500.00 Inventory 5 (being to record equipment taken on lease) 6 Cash Jan. 1 30,400.00 7 30,400.00 Lease Receivable 8 GENERAL JOURNAL Score: 57/101 POST. REF DEBIT DATE CREDIT ACCOUNT TITLE 243,200.00 Jan. 1 Lease Receivable Cost of Goods Sold 145,500.00 2 169,138.21 Sales Revenue 3 Unearned Interest 74,061.79 4 145,500.00 Inventory 5 (being to record equipment taken on lease) 6 Cash Jan. 1 30,400.00 7 30,400.00 Lease Receivable 8
GENERAL JOURNAL Score: 57/101 POST. REF DEBIT DATE CREDIT ACCOUNT TITLE 243,200.00 Jan. 1 Lease Receivable Cost of Goods Sold 145,500.00 2 169,138.21 Sales Revenue 3 Unearned Interest 74,061.79 4 145,500.00 Inventory 5 (being to record equipment taken on lease) 6 Cash Jan. 1 30,400.00 7 30,400.00 Lease Receivable 8 GENERAL JOURNAL Score: 57/101 POST. REF DEBIT DATE CREDIT ACCOUNT TITLE 243,200.00 Jan. 1 Lease Receivable Cost of Goods Sold 145,500.00 2 169,138.21 Sales Revenue 3 Unearned Interest 74,061.79 4 145,500.00 Inventory 5 (being to record equipment taken on lease) 6 Cash Jan. 1 30,400.00 7 30,400.00 Lease Receivable 8
Chapter5: Operating Activities: Purchases And Cash Payments
Section: Chapter Questions
Problem 2.15C
Related questions
Question
On January 1, 2019, Ballieu Company leases specialty equipment with an economic life of 8 years to Anderson Company. The lease contains the following terms and provisions:
• | The lease is noncancelable and has a term of 8 years. |
• | The annual rentals are $30,400, payable at the beginning of each year. |
• | The interest rate implicit in the lease is 12%. |
• | Anderson agrees to pay all executory costs directly to a third party and is given an option to buy the equipment for $1 at the end of the lease term, December 31, 2026. |
• | The cost of the equipment to the lessor is $145,500, and the fair value is approximately $169,100. |
• | Ballieu incurs no material initial direct costs. |
• | It is probable that Ballieu will collect the lease payments. |
• | Ballieu estimates that the fair value is expected to be significantly greater than $1 at the end of the lease term. |
Ballieu calculates that the present value on January 1, 2019, of 8 annual payments in advance of $30,400 discounted at 12% is $169,138.21 (the $1 purchase option is ignored as immaterial).
Required:
1. | Next Level Identify the classification of the lease transaction from Ballieu’s point of view. |
2. | Prepare all the |
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Chart of Accounts
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General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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General Journal
Shaded cells have feedback.
2b. Prepare all the journal entries for Ballieu for the years 2019.
General Journal Instructions
All transactions on this page must be entered (except for post ref(s)) before you will receive Check My Work feedback.
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GENERAL JOURNAL
Score: 55/101
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![GENERAL JOURNAL
Score: 57/101
POST. REF
DEBIT
DATE
CREDIT
ACCOUNT TITLE
243,200.00
Jan. 1
Lease Receivable
Cost of Goods Sold
145,500.00
2
169,138.21
Sales Revenue
3
Unearned Interest
74,061.79
4
145,500.00
Inventory
5
(being to record equipment taken on lease)
6
Cash
Jan. 1
30,400.00
7
30,400.00
Lease Receivable
8](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F998b2f93-875f-4909-b109-addf10e877b1%2F130fb600-2ba3-46ea-99cb-e584c6e0def6%2Fepe5pmx.png&w=3840&q=75)
Transcribed Image Text:GENERAL JOURNAL
Score: 57/101
POST. REF
DEBIT
DATE
CREDIT
ACCOUNT TITLE
243,200.00
Jan. 1
Lease Receivable
Cost of Goods Sold
145,500.00
2
169,138.21
Sales Revenue
3
Unearned Interest
74,061.79
4
145,500.00
Inventory
5
(being to record equipment taken on lease)
6
Cash
Jan. 1
30,400.00
7
30,400.00
Lease Receivable
8
![GENERAL JOURNAL
Score: 57/101
POST. REF
DEBIT
DATE
CREDIT
ACCOUNT TITLE
243,200.00
Jan. 1
Lease Receivable
Cost of Goods Sold
145,500.00
2
169,138.21
Sales Revenue
3
Unearned Interest
74,061.79
4
145,500.00
Inventory
5
(being to record equipment taken on lease)
6
Cash
Jan. 1
30,400.00
7
30,400.00
Lease Receivable
8](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F998b2f93-875f-4909-b109-addf10e877b1%2F130fb600-2ba3-46ea-99cb-e584c6e0def6%2F9nnxy2.png&w=3840&q=75)
Transcribed Image Text:GENERAL JOURNAL
Score: 57/101
POST. REF
DEBIT
DATE
CREDIT
ACCOUNT TITLE
243,200.00
Jan. 1
Lease Receivable
Cost of Goods Sold
145,500.00
2
169,138.21
Sales Revenue
3
Unearned Interest
74,061.79
4
145,500.00
Inventory
5
(being to record equipment taken on lease)
6
Cash
Jan. 1
30,400.00
7
30,400.00
Lease Receivable
8
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