Sưe Zero, Inc, an equipment manufacturer, leased a freezer to Commercial Kitchen Company on January , 2019. The lease is for a b-year period and requives equai annual payments of $41,061.33 at the beginning of each year. The first payment is veceived on January , 2019. Suo Zero manufactured the freezer during 1ate 2018 and has carried it in finished goods inventory at a cost of $61,500. Collectalility of lease payments is reasonably predictalbe, and no important uncertainties surround the ameunt of costs yet to be incurred by Sue Zero. Sưe Zero set the annual vental to ensure an 8% vate of retum. The freezer has an economic life of 8 years with no residuai value and reverts back to Sub Zero at the termination of the lease. Required. can Compute the amount of lease receivaloie, round to the nearest whole dollar. Clo) Prepare an necessary journal entries on Sub 2eros books for 1019 andi 2O10, dgdin, round to the rearest whole dollar.

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Contract Costing

Contract costing is about tracing particular costs related to a particular contract entered into with the customer. It is one of the forms of job order costing. It is useful in long-term contracts at the most. It is seen that substantial time is required for the completion of the contract which takes different accounting periods. Thus, it is very much helpful for recognizing the costs associated with it and accounting in their specific accounting periods.