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Use the information from part b. Now, instead of 10 years, the lease termis only 3 years with annual lease payments of $66,565.39 at the beginning of each year. Record any journal entries necessary for Cheyenne from the sale and leaseback of computer equipment in 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Part C

Use the information from part b. Now, instead of 10 years, the lease termis only 3 years with annual lease payments of $66,565.39 at the beginning of each year. Record any journal entries necessary for Cheyenne from the sale and leaseback of computer equipment in 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Part C

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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Please answer Part C and show any work so I can understand.  Thank you for the help.      

Part A On January 1, 2020, Cheyenne Inc. sold computer equipment to Sage Hill Co. The sales price of the equipment was $514,000 and its carrying amount is $415,000. Record any journal entries necessary for Cheyenne from the sale of the computer equipment in 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Part B Use the information from part a. Assume that, on the same day the sale occurred, Cheyenne enters into an agreement to lease the equipment from Sage Hill for 10 years with annual lease payments of $6,565.39 at the end of each year, beginning on December 31, 2020. IF Cheyenne has an incremental borrowing rate of 5% and the equipment has an economic useful life of 10 years, record any journal entries necessary for Cheyenne from the sale and leaseback of computer equipment in 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 5,275.25. Record journal entries in the order presented in the problem.) Part C Use the information from part b. Now, instead of 10 years, the lease termis only 3 years with annual lease payments of $6.565.39 at the beginning of each year. Record any journal entries necessary for Cheyenne from the sale and leaseback of computer equipment in 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 2 decimal places, eg. 5,275.25. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit บบ20 Cash 514000.00 Galn on Disposal of Equlpment 99000.00 Equlpment 415000.00 (To record sale of equipment) 1/1/20 Right-of-Use Asset (To record the lease) 1/1/20 66565.39 Cash 66565.39 (To record lease payment) 12/31/20
Transcribed Image Text:Part A On January 1, 2020, Cheyenne Inc. sold computer equipment to Sage Hill Co. The sales price of the equipment was $514,000 and its carrying amount is $415,000. Record any journal entries necessary for Cheyenne from the sale of the computer equipment in 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Part B Use the information from part a. Assume that, on the same day the sale occurred, Cheyenne enters into an agreement to lease the equipment from Sage Hill for 10 years with annual lease payments of $6,565.39 at the end of each year, beginning on December 31, 2020. IF Cheyenne has an incremental borrowing rate of 5% and the equipment has an economic useful life of 10 years, record any journal entries necessary for Cheyenne from the sale and leaseback of computer equipment in 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 5,275.25. Record journal entries in the order presented in the problem.) Part C Use the information from part b. Now, instead of 10 years, the lease termis only 3 years with annual lease payments of $6.565.39 at the beginning of each year. Record any journal entries necessary for Cheyenne from the sale and leaseback of computer equipment in 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 2 decimal places, eg. 5,275.25. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit บบ20 Cash 514000.00 Galn on Disposal of Equlpment 99000.00 Equlpment 415000.00 (To record sale of equipment) 1/1/20 Right-of-Use Asset (To record the lease) 1/1/20 66565.39 Cash 66565.39 (To record lease payment) 12/31/20
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