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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6f970fba-4460-4d2f-aa99-d73d044de39d%2F87666c04-5728-4224-b72c-4bbd56787265%2Fh5ullm_processed.jpeg&w=3840&q=75)
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6f970fba-4460-4d2f-aa99-d73d044de39d%2F87666c04-5728-4224-b72c-4bbd56787265%2F3vfli7i_processed.jpeg&w=3840&q=75)
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
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