The following relate to an operating lease agreement:
a. record the lease revenue
b. record the cash received
c. record the cost of the lease
d. record the depreciation
e. record the lease revenue
f. record the cash received
g. record the cost of the lease
h. record the depreciation
i. record the lease revenue
Particulars | Debit | Credit | |
a | Lease receivable | 134500 | |
Lease revenue | 134500 | ||
( Being revenue recognised) | |||
b | Cash | 134500 | |
Lease receivable | 134500 | ||
( Being cash received) | |||
c | Incremental cost | 4950 | |
Cash | 4950 | ||
( Being cost recorded) | |||
d | Depreciation | 95000 | |
Asset | 95000 | ||
( Being depreciation recorded) | |||
e | Lease receivable | 134500 | |
Lease revenue | 134500 | ||
( Being revenue recognised) | |||
f | Cash | 134500 | |
Lease receivable | 134500 | ||
( Being cash received) | |||
g | no entry | ||
h | Depreciation | 95000 | |
Asset | 95000 | ||
( Being depreciation recorded) | |||
i | Lease receivable | 134500 | |
Lease revenue | 134500 | ||
( Being revenue recognised) | |||
The following relate to an operating lease agreement: The lease term is 3 years, beginning January...
The following relate to an operating lease agreement: a. The lease term is 3 years, beginning January 1, 2018. b. The leased asset cost the lessor $760,000 and had a useful life of eight years with no residual value. The lessor uses straight-lir depreciation for its depreciable assets. c. Annual lease payments at the beginning of each year were $134,500. d. Incremental costs of negotiating costs of negotiating and consummating the completed lease transaction incurred by the lessor were $4,950....
Zoom in on the image and the clarity resolves! The following relate to an operating lease agreement: a. The lease term is 3 years, beginning January 1, 2018 b. The leased asset cost the lessor $750,000 and had a useful life of eight years with no residual value. The lessor uses straight-line depreciation for its depreciable assets. c. Annual lease payments at the beginning of each year were $136,500. d. Incremental costs of negotiating costs of negotiating and consummating the...
Exercise 15-34 Lessor's Initlal direct costs; operating lease [LO15-4, 15-7] The following relate to an operating lease agreement a. The lease term is 3 years, beginning January 1, 2018. b. The leased asset cost the lessor $950,000 and had a useful life of elght years with no residual value. The lessor uses stralght-line depreclation for Its depreciable assets. C. Annual lease payments at the beginning of each year were $138,500. d. Incremental costs of negotlating costs of negotlating and consummating...
he lease agreement and related facts indicate the following: Leased equipment had a retail cash selling price of $380,000. Its useful life was four years with no residual value. The lease term was four years and the lessor paid $305,000 to acquire the equipment (thus, selling profit). Lessor’s implicit rate when calculating annual lease payments was 10%. Annual lease payments beginning January 1, 2021, the beginning of the lease, were $108,981. Incremental costs of commissions for brokering the lease and...
Terms of a lease agreement and related facts were: The lease asset had a retail cash selling price of $102,000. Its useful life was six years with no residual value (straight-line depreciation). Annual lease payments at the beginning of each year were $21,742, beginning January 1. Lessor’s implicit rate when calculating annual rental payments was 11%. Costs of $2,162 for legal fees for the lease execution were the responsibility of the lessor. Required: Prepare the appropriate entries for the lessor...
The lease agreement and related facts indicate the following: a. Leased equipment had a retail cash selling price of $400,000. Its useful life was six years with no residual value. b. The lease term was six years and the lessor paid $315,000 to acquire the equipment (thus, selling profit). c. Lessor’s implicit rate when calculating annual lease payments was 8%. d. Annual lease payments beginning January 1, 2021, the beginning of the lease, were $80,117. e. Incremental costs of commissions...
Exercise 15-35 (Algo) Lessor's initial direct costs; sales-type lease (LO15-3, 15-7) The lease agreement and related facts indicate the following: a. Leased equipment had a retail cash selling price of $400,000. Its useful life was six years with no residual value. b. The lease term was six years and the lessor paid $315,000 to acquire the equipment (thus, selling profit). c. Lessor's implicit rate when calculating annual lease payments was 8%. d. Annual lease payments beginning January 1, 2021, the...
Terms of a lease agreement and related facts were as follows: a. Incremental costs of commissions for brokering the lease and consummating the completed lease transaction incurred by the lessor were $4,145. b. The retail cash selling price of the leased asset was $504,000. Its useful life was three years with no residual value. c. The lease term was three years and the lessor paid $504,000 to acquire the asset. d. Annual lease payments at the beginning of each year...
The lease agreement and related facts indicate the following: Leased equipment had a retail cash selling price of $420,000. Its useful life was five years with no residual value. The lease term is Five years and the lessor paid $325,000 to acquire the equipment (thus, selling profit). Lessor’s implicit rate when calculating annual lease payments was 10%. Annual lease payments beginning January 1, 2018, the beginning of the lease, were $100,723. Incremental costs of commissions for brokering the lease and...
On January 1, 2021, Robertson Construction leased several items of equipment under a two-year operating lease agreement from Jamison Leasing, which routinely finances equipment for other firms at an annual interest rate of 5%. The contract calls for four rent payments of $57,000 each, payable semiannually on June 30 and December 31 each year. The equipment was acquired by Jamison Leasing at a cost of $377,000 and was expected to have a useful life of five years with no residual...