Warren Marina owns a large marina that contains numerous boat slips of various sizes. Warren contracts with boat owners to provideslips to house the customers' boats. Lucky Fisherman Fleet contracted with Warren to provide space for four of its fishing boats. Thecontract specifies that Lucky Fisherman's boats will be kept in identified slips in the marina. The agreement includes the requirementthat Warren provide 45-foot slips per boat for a three-year period, space that Lucky Fisherman can modify with fenders, docklines, andequipment needed to conduct its fishing business. Warren cannot switch locations of the boats or modify the slips without LuckyFisherman's consent. Lucky Fisherman Fleet paid $21,000 on March 1, 2021, for the first year's accommodations. The market rate ofinterest is 7%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tablesprovided.)Required:Prepare the appropriate entry(s) for Lucky Fisherman Fleet at March 1, the commencement of the agreement. (If no entry is requiredfor a transaction/event, select "No journal entry required" in the first account field. Round your final answers to the nearest wholedollar amount.)View transaction listRecord the journal entry needed at commencement ofthe lease.Record the cash payment.:X:Credit>

Lease payments gives to use the equipment without any large initial investment. Journal entry needed…

Answered: to house the customers' boats. Lucky…

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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