---**Lease Transaction Recording: Educational Example**On April 1, 2021, Primer Corp. signs a five-year lease to use office space. The present value of the monthly lease payments is $100,000.**Task: Record the Lease Agreement***Instruction: If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.*- **Button:** *View transaction list*---**Journal Entry Worksheet**- **Navigation:** Sliding arrows to move through entries**Entry Instruction:**- **Entry Box:** "Record the lease."*Note: Enter debits before credits.***Journal Table:**| Date | Account Title | Debit | Credit ||------------|---------------|-------|--------|| April 01, 2021 | | | || | | | || | | | || | | | || | | | |**Action Buttons:**- *Record entry*- *Clear entry*- *View general journal*--- This example demonstrates how to document a lease agreement in a journal entry format, focusing on proper date entry and account labeling.

Answered: Image /qna-images/answer/f1b73b2a-741f-49d1-918e-2fca5141d4ca.jpg

On April 1, 2021, Primer Corp. signs a five-year lease to use office space. The present value of the monthly lease payments Is $100,000. Record the lease. (If no entry Is required for a particular transaction/event, select "No Journal Entry Required" in the first account fleld.)

On April 1, 2021, Primer Corp. signs a five-year lease to use office space. The present value of the monthly lease payments Is $100,000. Record the lease. (If no entry Is required for a particular transaction/event, select "No Journal Entry Required" in the first account fleld.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Vaibhav
Pinky Enterprises entered into a real estate lease agreement for a new building on March 1, 2023. The lease is an operating lease and is fully executed on that day. Recognizing that it will take a few months for business to be in full swing, Pinky was able to negotiable for 6 months of free rent before rent payments will commence. Accordingly, the terms of the lease require Pinky to make 54 consecutive payments of $24,600 per month beginning on September 1, 2023. The lease term spans five years. Pinky's financial year-end is December 31, 2023. What amount will Pinky record as its lease expense with respect to this building for the year ended December 31, 2023? a. $221,400 O b. $199,260 O c. $98,400 O d. $246,000
Provide all journal entries that Kelly K. inc. will record over the whole term of the lease.
Cullumber Company signed a lease for an office building for a period of 9 years. Under the lease agreement, a security deposit of $7,200 is made. The deposit will be returned at the expiration of the lease with interest compounded at 6% per year. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What amount will Cullumber receive at the time the lease expires? (Round answer to 2 decimal places, e.g. 25.25.) Amount at the time the lease expires
Zachariah City's water utility fund enters into a five-year lease for maintenance equipment on July 1, 2022. The City's fiscal year end is December 31, 2022. Assuming lease payments are $50,000, the interest rate is 5%, and the present value of the lease payments is $227,298. 1. Record any necessary entry at the inception of the lease. 2. Record the first lease payment of $50,000 on July 2, 2022. 3. Record any necessary amortization on December 31, 2022. 4. Record the second lease payment of $50,000 on July 2, 2023. Reset. Now show me what these four journal entries would be if it had been the City's general fund that entered into the lease.
19 On September 30, 2024, Truckee Garbage leased equipment from a supplier and agreed to pay $125,000 annually for 15 years beginning September 30, 2025. Generally accepted accounting principles require that a liability be recorded for this lease agreement for the present value of scheduled payments. Accordingly, at inception of the lease, Truckee recorded a $1,214,031 lease liability. Determine the interest rate implicit in the lease agreement. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
On July 1, 2020, Shroff Company leased a warehouse building under a 10-year lease agreement. The lease requires quarterly lease payments of $4,500. The first lease payment is due on September 30, 2020. The lease was reported as a finance lease using an 8% annual interest rate. a. Prepare the journal entry to record the commencement of the lease on July 1, 2020. b. Prepare the journal entries that would be necessary on September 30 and December 31, 2020. c. Post the entries from parts a and b in their appropriate T-accounts. d. Prepare a financial statement effects template to show the effects template to show the effects of the entries from parts a and b on the balance sheet and income statement.
990.
On January 1, 2024, Stone leased an office building. Terms of the lease require Stone to make 20 annual lease payments of $124, 000 beginning on January 1, 2024. An 11% interest rate is implicit in the lease agreement. At what amount should Stone record the lease liability on January 1, 2024, before any lease payments are made? Note: Round your final answers to nearest whole dollar amount. Show less Table, Excel, or calculator function Table, Excel, or calculator function: Payment: n = i : Liability: =
On October 1, 2019, Viking Trivia Company paid $72,000 for a two-year lease on an office building. The payment was recorded as prepaid rent, and the lease commenced on the date of payment. Debit Account: Debit Amount: Credit Account: Credit Amount:
Prepare all the journal entries for Scuppermong for Years 1 and 2.