TB Problem 15-200 (Static) Amelia Company leased a warehouse from... Amelia Company leased a warehouse from Island Industries on July 1, 2024, in a finance lease. The present value of the lease payments discounted at 10% was $162,217. Ten annual lease payments of $24,000 are due each July 1, beginning July 1, 2024. Island had constructed the building recently for $132,000 and its retail fair value was $162,217. Required: Assuming that control of the warehouse building is transferred to Amelia Company at the beginning of the lease. Prepare the two journal entries to record the lease by Island on July 1, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No 1 2 Date July 01, 2024 July 01, 2024 Lease receivable Cost of goods sold Building Cash Lease receivable Answer is not complete. General Journal 333 ✓ Debit 162,217 ✔ 24,000✔ Credit 30,217 x 132,000 ✓ 24,000

TB Problem 15-200 (Static) Amelia Company leased a warehouse from... Amelia Company leased a warehouse from Island Industries on July 1, 2024, in a finance lease. The present value of the lease payments discounted at 10% was $162,217. Ten annual lease payments of $24,000 are due each July 1, beginning July 1, 2024. Island had constructed the building recently for $132,000 and its retail fair value was $162,217. Required: Assuming that control of the warehouse building is transferred to Amelia Company at the beginning of the lease. Prepare the two journal entries to record the lease by Island on July 1, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No 1 2 Date July 01, 2024 July 01, 2024 Lease receivable Cost of goods sold Building Cash Lease receivable Answer is not complete. General Journal 333 ✓ Debit 162,217 ✔ 24,000✔ Credit 30,217 x 132,000 ✓ 24,000

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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