Question

Check 10 Warren Marina owns a large marina that contains numerous boat slips of various sizes. Warren contracts with boat owners to provide slips to house the customers' boats. Lucky Fisherman Fleet contracted with Warren to provide space for four of its fishing boats. The contract specifies that Lucky Fisherman's boats will be kept in identified slips in the marina. The agreement includes the requirement that Warren provide 45-foot slips per boat for a three-year period, space that Lucky Fisherman can modify with fenders, docklines, and equipment needed to conduct its fishing business. Warren cannot switch locations of the boats or modify the slips without Lucky Fisherman's consent. Lucky Fisherman Fleet paid $19,500 on March 1, 2021, for the first year's accommodations. The market rate of interest is 8%. (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 tables provided.) points Skipped eBook Required: Prepare the appropriate entry(s) for Lucky Fisherman Fleet at March 1, the commencement of the agreement. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Round your final answers to the nearest whole dollar amount.) Print References View transaction list Journal entry worksheet Record the journal entry needed at commencement of the lease.

Answer 1

Answer Page No ③ : 31= 84, n= 3 year period Present value of lease liability = (19500 (1980 yerg) + (19500 = (19600 x 1) + (19500X0.92693) +(19600 x0.85734) . = 19500 + 18056 + 16718. = $54244 Particular Debit Credit Lease asset $54274 Lease liability $54274 (To record lease liability) Lease liability $19500 . cash $19500 (To record payment of lease)