Intermediate Accounting - Myaccountinglab - Pearson Etext Access Card Student Value Edition
Intermediate Accounting - Myaccountinglab - Pearson Etext Access Card Student Value Edition
1st Edition
ISBN: 9780134047430
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
Question
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Chapter 18, Problem 18.6P

a.

To determine

The type of lease for both lessor and the lessee.

Given information:

Lease term is 6 years.

Economic life of asset is 7 years.

Fair value of the equipment is $1,554,516.

Interest rate is 8%

Annual lease payments are $276,016.

Lessee depreciates the asset on SLM basis.

b.

To determine

To prepare: The amortization table for lease term for lessor and lessee.

c.

To determine

To prepare: The journal entries for the lessee.

d.

To determine

To prepare: The journal entries for the lessor.

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General Account

Chapter 18 Solutions

Intermediate Accounting - Myaccountinglab - Pearson Etext Access Card Student Value Edition

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