On Jan 1, 20x1, Panda Yummy entered intoan agreement to lease packagingequipment from RCT financing. The leasewas for 6 years, commencing immediatelyon January 1, 20x1. Under the agreement,Panda Yummy would make a leasepayment of $24,000 at the beginning ofeach of the 6 years. The equipment wasexpected to have an economic life of 1Oyears.Under the agreement, Panda Yummy hadthe option of purchasing the packagingequipment for $2,000 at the end of thelease term, when the equipment wasexpected to be worth $8,000. The lessor'srate of return on the leasing arrangementwas 7%Panda Yummy had a year-end of Dec 31.RequiredPrepare an amortization table for PandaYummy for the lease.Prepare all Journal entries for 20x1 and 20X2Prepare the journal entries that Panda Yummywould make when exercising the bargainpurchase option at the end of the lease term.

Lease- Lease agreements are contracts or instruments that transfer property from one person to…

On Jan 1, 20x1, Panda Yummy entered into an agreement to lease packaging equipment from RCT financing. The lease was for 6 years, commencing immediately on January 1, 20x1. Under the agreement, Panda Yummy would make a lease payment of $24,000 at the beginning of each of the 6 years. The equipment was expected to have an economic life of 1O

On Jan 1, 20x1, Panda Yummy entered into an agreement to lease packaging equipment from RCT financing. The lease was for 6 years, commencing immediately on January 1, 20x1. Under the agreement, Panda Yummy would make a lease payment of $24,000 at the beginning of each of the 6 years. The equipment was expected to have an economic life of 1O

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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