On January 1, 2025, Carla Vista Animation sold a truck to Sandhill Finance for $41,000 and immediately leased it back. The truck w carried on Carla Vista's books at $34,000. The term of the lease is 5 years, there is no bargain purchase option, and title does not transfer to Carla Vista at lease-end. The lease requires five equal rental payments of $9,470 at the end of each year (first payment a January 1, 2026). The appropriate rate of interest is 5%, the truck has a useful life of 5 years, with no expected residual value at the of the lease term. Prepare Carla Vista's 2025 journal entries. (List all debit entries before credit entries. Credit account titles are automatically indented whe the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to O decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.) Click here to view factor tables..

Q: What is agency promblem in financial terms?

A: Agency problem is the conflict arises in the interest inherent in any relationship, in which one…

Q: How to prepare pro-forma income statement?

A: Income statement is a statement which shows all incomes, expenses for calculation of net profit or…

Q: what the difference between accounting income and economic income?

A: Accounting income can be defined as an estimate of the performance in the operations of the company.…

Q: Required information Skip to question [The following information applies to the questions displayed…

A: Segment reporting breaks down the operations of a company into manageable pieces, or segments.…

Q: Differentiate the Revenue Cycle and Expenditure cycle

A: The processes of the business are divided into different accounting cycles. The revenue cycle,…

Q: Define Proprietorship

A: A form of an organization where a single person is the owner and controller of the business is known…

Leasing

Leasing is a contractual arrangement in which someone (a lessee) pays the owner (or lessor) of a building, land, vehicle, or other asset for the use of that asset. The lease is the agreement between lessee and lessor.