Recording Operating Lease-Lessor Gomez Inc. leases a vehicle from CareMax Inc. on January 1 for a three-year period. Gomez agrees to make $9,600 annual payments beginning on January 1. Prepare the journal entries during the year for CareMax Inc. assuming that the fair value of the vehicle is $44,800 and it has a useful life of 6 years with no salvage value (depreciated using the straight-line method). CarMax Inc. appropriately classifies the ease as an operating lease. Note: Round your answers to the nearest whole dollar. Date an. 11 Right-of-Use Asset Dec. 31 Account Name Dec. 31 Lease Liability To record receipt of lease payment To record lease revenue ✿ To record depreciation ● • ● ● Dr. Cr.
Recording Operating Lease-Lessor Gomez Inc. leases a vehicle from CareMax Inc. on January 1 for a three-year period. Gomez agrees to make $9,600 annual payments beginning on January 1. Prepare the journal entries during the year for CareMax Inc. assuming that the fair value of the vehicle is $44,800 and it has a useful life of 6 years with no salvage value (depreciated using the straight-line method). CarMax Inc. appropriately classifies the ease as an operating lease. Note: Round your answers to the nearest whole dollar. Date an. 11 Right-of-Use Asset Dec. 31 Account Name Dec. 31 Lease Liability To record receipt of lease payment To record lease revenue ✿ To record depreciation ● • ● ● Dr. Cr.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Recording Operating Lease-Lessor
Gomez Inc. leases a vehicle from CareMax Inc. on January 1 for a three-year period. Gomez agrees to make $9,600 annual payments beginning on January 1. Prepare the journal entries during the year for
CareMax Inc. assuming that the fair value of the vehicle is $44,800 and it has a useful life of 6 years with no salvage value (depreciated using the straight-line method). CarMax Inc. appropriately classifies the
lease as an operating lease.
Note: Round your answers to the nearest whole dollar.
Date
Jan, 1
Dec. 31
Dec. 31
Account Name
Right-of-Use Asset
Lease Liability
To record receipt of lease payment
To record lease revenue
To record depreciation
◆
◆
Dr.
Cr.
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