Tamarisk Corporation recorded a right-of-use asset for $227,200 as a result of a finance lease on December 31, 2024. Tamarisk's incremental borrowing rate is 10%, and the implicit rate of the lessor was not known at the commencement of the lease. Tamarisk made the first lease payment of $38,716 on December 31, 2024. The lease requires 8 annual payments. The equipment has a useful life of 8 years with no residual value. Prepare Tamarisk's December 31, 2025, entries. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places e.g. 5,275.) Date December 31, 2025 December 31, 2025 Account Titles and Explanation (To record lease payment) (To record amortization of the right-of-use asset) Debit 10 Credit
Tamarisk Corporation recorded a right-of-use asset for $227,200 as a result of a finance lease on December 31, 2024. Tamarisk's incremental borrowing rate is 10%, and the implicit rate of the lessor was not known at the commencement of the lease. Tamarisk made the first lease payment of $38,716 on December 31, 2024. The lease requires 8 annual payments. The equipment has a useful life of 8 years with no residual value. Prepare Tamarisk's December 31, 2025, entries. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places e.g. 5,275.) Date December 31, 2025 December 31, 2025 Account Titles and Explanation (To record lease payment) (To record amortization of the right-of-use asset) Debit 10 Credit
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter20: Accounting For Leases
Section: Chapter Questions
Problem 9RE: Use the information in RE20-3. Prepare the journal entries that Richie Company (the lessor) would...
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