Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN: 9781337788281
Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher: Cengage Learning
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Chapter 20, Problem 9E
Lessor Accounting with Guaranteed Residual Value Use the information for Edom Company in E20-8, except that the residual value was guaranteed by Davis Company (the lessee).
Required:
- 1. Assuming that the lease is a sales-type lease, calculate the selling price.
- 2. Prepare a table summarizing the lease receipts and interest income earned by Edom.
- 3. Prepare journal entries for Edom tor the years 2019 and 2020.
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Intermediate Accounting: Reporting And Analysis
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