The journal entry for the annual lease payment for Fun City will include: a) A debit...
The journal entry for the annual lease payment for Fun City will include:
a) A debit to Lease Obligation Payable
b)A credit to Lease Obligation Payable
c) A debit to Lease Expense
d) A debit to Expenditures ~ Principle of Lease Obligation
Homework Answers
Answer: (a) A debit to Lease Obligation Payable
Explanation:
At the inception of the lease a lease liability equal to the PV of the minimum lease payments is created. Payments would be set off against such a liability and interest expense.
Add Answer to:
The journal entry for the annual lease payment for Fun City will
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Required 1
Journal entry 1 - Record lease by lessee.
Journal entry 2 - Record the cash payment January 1, 2021
Journal entry 3 -Record the cash payment December 31, 2021
Journal entry 4 -Record amortization of the right-of-use asset
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Required 2
Journal entry 1 - Record lease by lessor.
Journal entry 2 - Record the cash received (include maintenance
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