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On December 31, 2024. Skysong Corporation signed a 5-year, non-cancelable lease for a machine. The terms of the lease called for Skysong to make annual payments of $8.476 at the beginning of each year, starting December 31, 2024. The machine has an estimated useful life of 6 years and a $5,200 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Skysong uses the straight-line method of depreciation for all of its plant assets. Skysong's incremental borrowing rate is 11% and the lessor's implicit rate is unknown. ension Tip: Double click to open in new tab Show Transcribed Text 3 C Prepare all necessary journal entries for Skysong for this lease through December 31, 2025. (Ust all debit entries before credit

On December 31, 2024. Skysong Corporation signed a 5-year, non-cancelable lease for a machine. The terms of the lease called for Skysong to make annual payments of $8.476 at the beginning of each year, starting December 31, 2024. The machine has an estimated useful life of 6 years and a $5,200 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Skysong uses the straight-line method of depreciation for all of its plant assets. Skysong's incremental borrowing rate is 11% and the lessor's implicit rate is unknown. ension Tip: Double click to open in new tab Show Transcribed Text 3 C Prepare all necessary journal entries for Skysong for this lease through December 31, 2025. (Ust all debit entries before credit

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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answer in text form please (without image), Note: .Every entry should have narration please
On December 31, 2024, Skysong Corporation signed a 5-year, non-cancelable lease for a machine. The terms of the lease called for Skysong to make annual payments of $8.476 at the beginning of each year, starting December 31, 2024. The machine has an estimated useful life of 6 years and a $5,200 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term Skysong uses the straight-line method of depreciation for all of its plant assets. Skysong's incremental borrowing rate is 11% and the lessor's implicit rate is unknown. Skip Extension Tip: Double click to open in new tab Show Transcribed Text 3 ( Prepare all necessary journal entries for Skysong for this lease through December 31, 2025. (Ust all debit entries before credit entries. Record journal entries in the order presented in the problem. Credit account titles are automatically Indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account tities and enter 0 for the amounts. Round answers to 0 decimal places eg. 5,275.)
Transcribed Image Text:On December 31, 2024, Skysong Corporation signed a 5-year, non-cancelable lease for a machine. The terms of the lease called for Skysong to make annual payments of $8.476 at the beginning of each year, starting December 31, 2024. The machine has an estimated useful life of 6 years and a $5,200 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term Skysong uses the straight-line method of depreciation for all of its plant assets. Skysong's incremental borrowing rate is 11% and the lessor's implicit rate is unknown. Skip Extension Tip: Double click to open in new tab Show Transcribed Text 3 ( Prepare all necessary journal entries for Skysong for this lease through December 31, 2025. (Ust all debit entries before credit entries. Record journal entries in the order presented in the problem. Credit account titles are automatically Indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account tities and enter 0 for the amounts. Round answers to 0 decimal places eg. 5,275.)
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