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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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 O 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 Credit
Transcribed Image Text: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 O 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 Credit
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