Cost of machine (classified by Goat as inventory)leased a machine to Meh, Inc. Information on the lease is asOn January 1, 20x1, Goat Co., a dealer of industrial machines,2.follows:Cost of machine (classified by Goat as inventory)P600,000Useful life of machine5 years4 yearsP200,000Lease termAnnual rent payable at the start of each yearMarket rate of interest10%Goat Co, incurred direct costs of P40,000 in negotiating the lease.The lease qualifies for sales type lease accounting.Requirement: Provide the journal entries on Jan. 1, 20x1 and Dec.31, 20x1.

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Description: Cost of machine (classified by Goat as inventory)leased a machine to Meh, Inc. Information on the lease is asOn January 1, 20x1, Goat Co., a dealer of industrial machines,2.follows:Cost of machine (classified by Goat as inventory)P600,000Useful life

In the case of sales type lease accounting revenue should be recorded based on the lower of fair…

Answered: n January 1, 20x1, Goat Co., a dealer…

Business

Accounting

n January 1, 20x1, Goat Co., a dealer sed a machine to Meh, Inc. Informa lows: imachine (classified by Goat as inventc

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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