Saved Help Seve On January 1, 2021, Obermax Corporation agreed to lease a piece of equipment to a customer for 10 years. The lease qualified as a finance/sales-type lease with a 6% implicit interest rate. The customer agreed to make a payment of $8,000 at the beginning of each year, the first payment being made on January 1, 2021. The journal entry Obermax should recognize at the inception of the lease includes: Multiple Choice a debit to lease receivable of $80,000. a debit to lease receivable of $62,414.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On January 1, 2021, Obermax Corporation agreed to lease a piece of equipment to a customer for 10 years. The lease qualified as a finance/sales-type lease with a 6% implicit interest rate. The customer agreed to make a payment of $8,000 at the beginning of each year, the first payment being made on January 1, 2021.

The journal entry Obermax should recognize at the inception of the lease includes:

**Multiple Choice Options:**
1. A debit to lease receivable of $50,000.
2. A debit to lease receivable of $62,414.
3. A credit to interest revenue of $3,265.
4. A debit to lease receivable of $58,881.
Transcribed Image Text:On January 1, 2021, Obermax Corporation agreed to lease a piece of equipment to a customer for 10 years. The lease qualified as a finance/sales-type lease with a 6% implicit interest rate. The customer agreed to make a payment of $8,000 at the beginning of each year, the first payment being made on January 1, 2021. The journal entry Obermax should recognize at the inception of the lease includes: **Multiple Choice Options:** 1. A debit to lease receivable of $50,000. 2. A debit to lease receivable of $62,414. 3. A credit to interest revenue of $3,265. 4. A debit to lease receivable of $58,881.
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