Huskies Together Company leased equipment from Caterpillar, beginning on December 31, 2020. The lease term is 4 years and requires equal rental payments of $41,933 at the beginning of each year of the lease, starting on the commencement date (December 31, 2020). The equipment has a fair value at the commencement date of the lease of $150,001, an estimated useful life of 4 years, and no estimated residual value. The appropriate interest rate is 8%. Prepare Huskies Together's 2020 and 2021 journal entries, assuming Huskies Together depreciates similar equipment it owns on a straight-line basis. k for potiol orodite
Huskies Together Company leased equipment from Caterpillar, beginning on December 31, 2020. The lease term is 4 years and requires equal rental payments of $41,933 at the beginning of each year of the lease, starting on the commencement date (December 31, 2020). The equipment has a fair value at the commencement date of the lease of $150,001, an estimated useful life of 4 years, and no estimated residual value. The appropriate interest rate is 8%. Prepare Huskies Together's 2020 and 2021 journal entries, assuming Huskies Together depreciates similar equipment it owns on a straight-line basis. k for potiol orodite
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter20: Accounting For Leases
Section: Chapter Questions
Problem 10MC: On August 1, 2019, Kern Company leased a machine to Day Company for a 6-year period requiring...
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![Huskies Together Company leased equipment from Caterpillar, beginning on December 31, 2020. The lease term is 4 years and requires equal rental payments of $41,933 at the beginning of each year of
the lease, starting on the commencement date (December 31, 2020). The equipment has a fair value at the commencement date of the lease of $150,001, an estimated useful life of 4 years, and no
estimated residual value. The appropriate interest rate is 8%.
Prepare Huskies Together's 2020 and 2021 journal entries, assuming Huskies Together depreciates similar equipment it owns on a straight-line basis.
Show all your work for partial credits.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F848d2815-618a-44e4-8601-215ffcbc9c00%2F7f66be0c-c696-4db4-b3d0-76bc14c1bf76%2Frkdx9q7_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Huskies Together Company leased equipment from Caterpillar, beginning on December 31, 2020. The lease term is 4 years and requires equal rental payments of $41,933 at the beginning of each year of
the lease, starting on the commencement date (December 31, 2020). The equipment has a fair value at the commencement date of the lease of $150,001, an estimated useful life of 4 years, and no
estimated residual value. The appropriate interest rate is 8%.
Prepare Huskies Together's 2020 and 2021 journal entries, assuming Huskies Together depreciates similar equipment it owns on a straight-line basis.
Show all your work for partial credits.
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