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Macroware Corporation reported the following disclosure note in its 2020 financial statements: Note 14-LEASES (in part) Supplemental cash flow information related to leases was as follows: (In millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases Operating cash flows from finance leases Financing cash flows from finance leases Fiscal Year Ended June 30, 2020 $ 1,834 341 414 Required: 1. Prepare a journal entry that summarizes the cash payments for operating leases during the year. 2. Prepare a journal entry that summarizes the cash payments for finance leases during the year.

Macroware Corporation reported the following disclosure note in its 2020 financial statements: Note 14-LEASES (in part) Supplemental cash flow information related to leases was as follows: (In millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases Operating cash flows from finance leases Financing cash flows from finance leases Fiscal Year Ended June 30, 2020 $ 1,834 341 414 Required: 1. Prepare a journal entry that summarizes the cash payments for operating leases during the year. 2. Prepare a journal entry that summarizes the cash payments for finance leases during the year.

FINANCIAL ACCOUNTING
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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**Exercise 15-40 (Algo) Reporting leases in a statement of cash flows; disclosure note; Macroware (LO 15-8)** Macroware Corporation reported the following disclosure note in its 2020 financial statements: **Note 14 — LEASES (in part)** Supplemental cash flow information related to leases was as follows: | (In millions) | Fiscal Year Ended June 30, 2020 | |-----------------------------------------------------------------------------------|--------------------------------| | Cash paid for amounts included in the measurement of lease liabilities: | | | Operating cash flows from operating leases | $1,834 | | Operating cash flows from finance leases | 31 | | Financing cash flows from finance leases | 414 | **Required:** 1. Prepare a journal entry that summarizes the cash payments for operating leases during the year. 2. Prepare a journal entry that summarizes the cash payments for finance leases during the year. **Complete this question by entering your answers in the tabs below.** **Required 1** Prepare a journal entry that summarizes the cash payments for operating leases during the year. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 5,000,000 should be entered as 5). **View transaction list** **Required 2** *Below the text box containing the instructions for Required 1 and Required 2, there are areas for entering answers and a navigation control indicating that this is page 19 of 20.*
Transcribed Image Text:**Exercise 15-40 (Algo) Reporting leases in a statement of cash flows; disclosure note; Macroware (LO 15-8)** Macroware Corporation reported the following disclosure note in its 2020 financial statements: **Note 14 — LEASES (in part)** Supplemental cash flow information related to leases was as follows: | (In millions) | Fiscal Year Ended June 30, 2020 | |-----------------------------------------------------------------------------------|--------------------------------| | Cash paid for amounts included in the measurement of lease liabilities: | | | Operating cash flows from operating leases | $1,834 | | Operating cash flows from finance leases | 31 | | Financing cash flows from finance leases | 414 | **Required:** 1. Prepare a journal entry that summarizes the cash payments for operating leases during the year. 2. Prepare a journal entry that summarizes the cash payments for finance leases during the year. **Complete this question by entering your answers in the tabs below.** **Required 1** Prepare a journal entry that summarizes the cash payments for operating leases during the year. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 5,000,000 should be entered as 5). **View transaction list** **Required 2** *Below the text box containing the instructions for Required 1 and Required 2, there are areas for entering answers and a navigation control indicating that this is page 19 of 20.*
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