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The following relate to an operating lease agreement: a. The lease term is 3 years, beginning January 1, 2021. b. The leased asset cost the lessor $870,000 and had a useful life of eight years with no residual value. The lessor uses straight-line depreciation for its depreciable assets. c. Annual lease payments at the beginning of each year were $147,500. d. Incremental costs of negotiating and consummating the completed lease transaction incurred by the lessor were $3,450. Required: Prepare the appropriate entries for the lessor from the beginning of the lease through the end of the lease term. (Round your intermediate and final answers to the nearest whole dollar amount. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 Record the cash received. 3 4 Note: Enter debits before credits. Date January 01, 2021 Record entry 5 6 General Journal Clear entry 7 8 Debit 13 Credit View general journal >

The following relate to an operating lease agreement: a. The lease term is 3 years, beginning January 1, 2021. b. The leased asset cost the lessor $870,000 and had a useful life of eight years with no residual value. The lessor uses straight-line depreciation for its depreciable assets. c. Annual lease payments at the beginning of each year were $147,500. d. Incremental costs of negotiating and consummating the completed lease transaction incurred by the lessor were $3,450. Required: Prepare the appropriate entries for the lessor from the beginning of the lease through the end of the lease term. (Round your intermediate and final answers to the nearest whole dollar amount. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 Record the cash received. 3 4 Note: Enter debits before credits. Date January 01, 2021 Record entry 5 6 General Journal Clear entry 7 8 Debit 13 Credit View general journal >

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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The following relate to an operating lease agreement: a. The lease term is 3 years, beginning January 1, 2021. b. The leased asset cost the lessor $870,000 and had a useful life of eight years with no residual value. The lessor uses straight-line depreciation for its depreciable assets. c. Annual lease payments at the beginning of each year were $147,500. d. Incremental costs of negotiating and consummating the completed lease transaction incurred by the lessor were $3,450. Required: Prepare the appropriate entries for the lessor from the beginning of the lease through the end of the lease term. (Round your intermediate and final answers to the nearest whole dollar amount. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 1 2 Record the cash received. 3 Note: Enter debits before credits. Date January 01, 2021 Record entry 4 5 6 General Journal Clear entry 7 8 Debit 13 Credit View general journal >
Transcribed Image Text:The following relate to an operating lease agreement: a. The lease term is 3 years, beginning January 1, 2021. b. The leased asset cost the lessor $870,000 and had a useful life of eight years with no residual value. The lessor uses straight-line depreciation for its depreciable assets. c. Annual lease payments at the beginning of each year were $147,500. d. Incremental costs of negotiating and consummating the completed lease transaction incurred by the lessor were $3,450. Required: Prepare the appropriate entries for the lessor from the beginning of the lease through the end of the lease term. (Round your intermediate and final answers to the nearest whole dollar amount. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 1 2 Record the cash received. 3 Note: Enter debits before credits. Date January 01, 2021 Record entry 4 5 6 General Journal Clear entry 7 8 Debit 13 Credit View general journal >
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