Oriole Ltd., a public company following IFRS, recorded a right-of-use asset and lease liability at $158,550 on May 1, 2023. The interest rate is 9%. Oriole made the first lease payment of $28,901 on May 1, 2023. The lease requires a total of 7 annual payments. The equipment has a useful life of 7 years with no residual value. Assume that at December 31, 2023, Oriole made an adjusting entry to accrue interest expense of $7,779 on the lease. Prepare Oriole's May 1, 2024 journal entry to record the second lease payment of $28,901. Assume that no reversing entries are made. (List all debit entries before credit entries. Credit account titles are automatically indented when 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. Round answers to O decimal places, e.g. 5,275.)
Oriole Ltd., a public company following IFRS, recorded a right-of-use asset and lease liability at $158,550 on May 1, 2023. The interest rate is 9%. Oriole made the first lease payment of $28,901 on May 1, 2023. The lease requires a total of 7 annual payments. The equipment has a useful life of 7 years with no residual value. Assume that at December 31, 2023, Oriole made an adjusting entry to accrue interest expense of $7,779 on the lease. Prepare Oriole's May 1, 2024 journal entry to record the second lease payment of $28,901. Assume that no reversing entries are made. (List all debit entries before credit entries. Credit account titles are automatically indented when 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. Round answers to O decimal places, e.g. 5,275.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
None

Transcribed Image Text:Your answer is partially correct.
Oriole Ltd., a public company following IFRS, recorded a right-of-use asset and lease liability at $158,550 on May 1, 2023. The interest
rate is 9%. Oriole made the first lease payment of $28,901 on May 1, 2023. The lease requires a total of 7 annual payments. The
equipment has a useful life of 7 years with no residual value. Assume that at December 31, 2023, Oriole made an adjusting entry to
accrue interest expense of $7,779 on the lease.
Prepare Oriole's May 1, 2024 journal entry to record the second lease payment of $28,901. Assume that no reversing entries are
made. (List all debit entries before credit entries. Credit account titles are automatically indented when 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. Round answers to O decimal places, e.g.
5,275.)
Date
Account Titles and Explanation
May 1, 2024
Right-of-Use Asset
Lease Liability
Cash
Debit
158550
Credit
129649
28901
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 1 images

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


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON

Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education