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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![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 S62,414.
a credit to interest revenue of $3,265.
a debit to lease receivable of $58.881.
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Transcribed Image Text: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 S62,414.
a credit to interest revenue of $3,265.
a debit to lease receivable of $58.881.
< Prev
12 of 40
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