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Sandhill Ltd., a public company following IFRS, recorded a right-of-use asset and lease liability at $153,300 on May 1, 2023. The interest rate is 10%. Sandhill made the first lease payment of $28,626 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, Sandhill made an adjusting entry to accrue interest expense of $8,312 on the lease. Prepare Sandhill's May 1, 2024 journal entry to record the second lease payment of $28,626. 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 Debit Credit

Sandhill Ltd., a public company following IFRS, recorded a right-of-use asset and lease liability at $153,300 on May 1, 2023. The interest rate is 10%. Sandhill made the first lease payment of $28,626 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, Sandhill made an adjusting entry to accrue interest expense of $8,312 on the lease. Prepare Sandhill's May 1, 2024 journal entry to record the second lease payment of $28,626. 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 Debit Credit

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Sandhill Ltd., a public company following IFRS, recorded a right-of-use asset and lease liability at $153,300 on May 1, 2023. The interest rate is 10%. Sandhill made the first lease payment of $28,626 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, Sandhill made an adjusting entry to accrue interest expense of $8,312 on the lease. Prepare Sandhill's May 1, 2024 journal entry to record the second lease payment of $28,626. 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 Debit Credit
Transcribed Image Text:Sandhill Ltd., a public company following IFRS, recorded a right-of-use asset and lease liability at $153,300 on May 1, 2023. The interest rate is 10%. Sandhill made the first lease payment of $28,626 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, Sandhill made an adjusting entry to accrue interest expense of $8,312 on the lease. Prepare Sandhill's May 1, 2024 journal entry to record the second lease payment of $28,626. 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 Debit Credit
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