Using (1) tables, (2) a financial calculator, or (3) Excel functions, calculate the amount of the capital lease and prepare Crane's September 1, 2020 journal entry assuming an interest rate of 11%. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round factor values to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275.) Account Titles and Explanation Equipment under Lease Obligations under Lease Cash (To record inception of lease and first lease payment.) Debit Credit 19,000
Using (1) tables, (2) a financial calculator, or (3) Excel functions, calculate the amount of the capital lease and prepare Crane's September 1, 2020 journal entry assuming an interest rate of 11%. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round factor values to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275.) Account Titles and Explanation Equipment under Lease Obligations under Lease Cash (To record inception of lease and first lease payment.) Debit Credit 19,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Current Attempt in Progress Crane Corporation, which uses ASPE, enters into a 6-year lease of equipment on September 1, 2023, that requires 6 annual payments of $39,000 each, beginning September 1, 2023. In addition, Crane guarantees the lessor a residual value of $29,000 at lease end. The equipment has a useful life of seven years. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE OF 1. (a) Using (1) tables, (2) a financial calculator, or (3) Excel functions, calculate the amount of the capital lease and prepare Crane's September 1, 2023
Transcribed Image Text:Using (1) tables, (2) a financial calculator, or (3) Excel functions, calculate the amount of the capital lease and prepare Crane's
September 1, 2020 journal entry assuming an interest rate of 11%. (Credit account titles are automatically indented when
the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and
enter O for the amounts. Round factor values to 5 decimal places, e.g. 1.25124 and final answers to O decimal places,
e.g. 5,275.)
Account Titles and Explanation
Equipment under Lease
Obligations under Lease
Cash
(To record inception of lease
and first lease payment.)
Debit
Credit
19,000
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