On January 1, 2024, 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 five years with no residual value. Both firms record amortization and depreciation semi-annually.
On January 1, 2024, 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 five years with no residual value. Both firms record amortization and
Required:
Prepare the appropriate journal entries for the lessor (Jamison Leasing) from the beginning of the lease through the end of 2024.
Note: If no entry is required for a transaction/event, select "No
- Record the first payment received by Jamison Leasing.
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- Record the amortization or depreciation expense for Jamison Leasing.
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- Record the second payment received by Jamison Leasing.
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- Record the amortization or depreciation expense for Jamison Leasing.
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