On January 1, 2021, Robertson Construction leased several items of equipment under a two-year operating lease agreement from Jamison Leasing, which routinely finances equipment for other firms at an annual interest rate of 4%. The contract calls for four rent payments of $58,000 each, payable semiannually on June 30 and December 31 each year. The equipment was acquired by Jamison Leasing at a cost of $378,000 and was expected to have a useful life of 5 years with no residual value. Both firms record amortization and depreciation semi-annually. (EV. of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: Prepare the appropriate journal entries for the lessee from the beginning of the lease through the end of 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate and final answers to the nearest whole dollar.)
On January 1, 2021, Robertson Construction leased several items of equipment under a two-year operating lease agreement from Jamison Leasing, which routinely finances equipment for other firms at an annual interest rate of 4%. The contract calls for four rent payments of $58,000 each, payable semiannually on June 30 and December 31 each year. The equipment was acquired by Jamison Leasing at a cost of $378,000 and was expected to have a useful life of 5 years with no residual value. Both firms record amortization and depreciation semi-annually. (EV. of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: Prepare the appropriate journal entries for the lessee from the beginning of the lease through the end of 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate and final answers to the nearest whole dollar.)
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 13E: On March 1, 2019, Elkhart enters into a new contract to build a specialized warehouse for 7 million....
Related questions
Question
Ee 66.
![On January 1, 2021, Robertson Construction leased several items of equipment under a two-year operating lease agreement from
Jamison Leasing, which routinely finances equipment for other firms at an annual interest rate of 4%. The contract calls for four rent
payments of $58,000 each, payable semiannually on June 30 and December 31 each year. The equipment was acquired by Jamison
Leasing at a cost of $378,000 and was expected to have a useful life of 5 years with no residual value. Both firms record amortization
and depreciation semi-annually. (EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from
the tables provided.)
Required:
Prepare the appropriate journal entries for the lessee from the beginning of the lease through the end of 2021. (If no entry is required
for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate and final answers to
the nearest whole dollar.)
View transaction list
Journal entry worksheet
2
3
Date
June 30, 2021
Note: Enter debits before credits.
4
Record the lease payment and interest expense for Robertson Construction.
5
General Journal
Interest expense
Lease payable
Debit
1,160
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdc7cff3e-a268-4c14-86f9-cc93324d32f9%2Fb4d0ea89-f337-4f1c-975b-132833e828fe%2Fb8vbzxi_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On January 1, 2021, Robertson Construction leased several items of equipment under a two-year operating lease agreement from
Jamison Leasing, which routinely finances equipment for other firms at an annual interest rate of 4%. The contract calls for four rent
payments of $58,000 each, payable semiannually on June 30 and December 31 each year. The equipment was acquired by Jamison
Leasing at a cost of $378,000 and was expected to have a useful life of 5 years with no residual value. Both firms record amortization
and depreciation semi-annually. (EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from
the tables provided.)
Required:
Prepare the appropriate journal entries for the lessee from the beginning of the lease through the end of 2021. (If no entry is required
for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate and final answers to
the nearest whole dollar.)
View transaction list
Journal entry worksheet
2
3
Date
June 30, 2021
Note: Enter debits before credits.
4
Record the lease payment and interest expense for Robertson Construction.
5
General Journal
Interest expense
Lease payable
Debit
1,160
Credit
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning