Ivanhoe Ltd., a public company following IFRS, recorded a right-of-use asset and lease liability at $155,400 on May 1, 2023. The interest rate is 12%. Ivanhoe made the first lease payment of $30,403 on May 1, 2023. The lease requires a total of 7 annual payments. The equipment has a useful life of 7 years with no residual value. Assume that at December 31, 2023, Ivanhoe made an adjusting entry to accrue interest expense of $10,000 on the lease. Prepare Ivanhoe's May 1, 2024 journal entry to record the second lease payment of $30,403. Assume that no reversing entries are made. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to O decimal places, e.g. 5,275.) Date May 1, 2024 Account Titles and Explanation Debit Credit
Ivanhoe Ltd., a public company following IFRS, recorded a right-of-use asset and lease liability at $155,400 on May 1, 2023. The interest rate is 12%. Ivanhoe made the first lease payment of $30,403 on May 1, 2023. The lease requires a total of 7 annual payments. The equipment has a useful life of 7 years with no residual value. Assume that at December 31, 2023, Ivanhoe made an adjusting entry to accrue interest expense of $10,000 on the lease. Prepare Ivanhoe's May 1, 2024 journal entry to record the second lease payment of $30,403. Assume that no reversing entries are made. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to O decimal places, e.g. 5,275.) Date May 1, 2024 Account Titles and Explanation Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Ivanhoe Ltd., a public company following IFRS, recorded a right-of-use asset and lease liability at $155,400 on May 1, 2023.
The interest rate is 12%. Ivanhoe made the first lease payment of $30,403 on May 1, 2023. The lease requires a total of 7
annual payments. The equipment has a useful life of 7 years with no residual value. Assume that at December 31, 2023,
Ivanhoe made an adjusting entry to accrue interest expense of $10,000 on the lease.
Prepare Ivanhoe's May 1, 2024 journal entry to record the second lease payment of $30,403. Assume that no reversing
entries are made. (List all debit entries before credit entries. Credit account titles are automatically indented when the
amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O
for the amounts. Round answers to O decimal places, e.g. 5,275.)
Date
May
1,
2024
Account Titles and Explanation
Debit
Credit
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