The lessee is aware that the lessor used an implicit rate of 4% Instructions 1. Indicate the type of tease ABC has entered into Prepare the Journial entries on ABCS books related to the lease 9greement for Inthe following dates: (round all amounts to the nearest dollar. Inclyde a Partial 9mortization schedule) 9. January I, 20IT bi December 31, 2017 6 Janyary I 2018

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
100%
These are the only instructions that I need help to solve in accounting.
-The lessee is qware that the lessor used an implicit
rate of 4%
Instructions:
1.
Indicate the tr pe of lease ABC has entered into
Prepare the Journal entries on ABCS books
related to the lease 9oreement for
Inthe following dates:
(round all amounts to the
nearest dollar. Indlyde a Partial
9mortization schedule)
9. January I 2017
b. December 31, 2017
C January Iy 2018
Transcribed Image Text:-The lessee is qware that the lessor used an implicit rate of 4% Instructions: 1. Indicate the tr pe of lease ABC has entered into Prepare the Journal entries on ABCS books related to the lease 9oreement for Inthe following dates: (round all amounts to the nearest dollar. Indlyde a Partial 9mortization schedule) 9. January I 2017 b. December 31, 2017 C January Iy 2018
ABC ComPany as lessee,enters into aie
lease agreementi oni Jandary Iy 2017, to
lease pauipment.
The following data are relevant to the
lease qgreementi
TIThe term 0f the inonCancellable le ase
Yis three Years Wth inon.
I renewal option are due on
Payments of $76,00 Gre. due on
Janyary 1, of each Year
The fair value of the egviteo
The fair value of the eauitment
On Tanuary I, Z011 is $50000. Thenic
egmiiment Käse amiestinhated
econimie 1ife of fiver years, and
an estimated residual valye of
The $0.nt coverls
94 the trrminatsse of thi Jause arh is capected
tThe equiement reverts back to the lessor
at the termingtion of the legse and
Theis expected to have use to theislessor
Transcribed Image Text:ABC ComPany as lessee,enters into aie lease agreementi oni Jandary Iy 2017, to lease pauipment. The following data are relevant to the lease qgreementi TIThe term 0f the inonCancellable le ase Yis three Years Wth inon. I renewal option are due on Payments of $76,00 Gre. due on Janyary 1, of each Year The fair value of the egviteo The fair value of the eauitment On Tanuary I, Z011 is $50000. Thenic egmiiment Käse amiestinhated econimie 1ife of fiver years, and an estimated residual valye of The $0.nt coverls 94 the trrminatsse of thi Jause arh is capected tThe equiement reverts back to the lessor at the termingtion of the legse and Theis expected to have use to theislessor
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

Blurred answer
Knowledge Booster
Methods of accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education