Question

BE21-12. use the information for geiberger corporation from be21-12 , expect assume the collictibility of the rentals is not probable. prepare any journal entries for Geiberger on december 31,2016.

(BE21.11L03) Geiberger AG manufactures drones. On Decem- ber 31, 2018, it leased to Althaus SA a drone that had cost €120,000 to manufacture. The lease agreement covers the 5-year useful life of the drone and requires five equal annual rentals of €40,800 payable each December 31, beginning December 31, 2018. An interest rate of 8% is implicit in the lease agreement. Collectibility of the rentals is probable. Prepare Geiberger's December 31, 2018, journal entries. BE21.12(L03) Use the information for Geiberger AG from BE21.11, except assume the collectibility of the rentals is not probable. Prepare any journal entries for Geiberger on December 31, 2018.

i need soluton for both of the probles in the picture.

Answer 1

- Answer Page No 0 BE21:10 Journal entries om de Lease receivable = 40,600 x PU ( 8 %., 5 years) - 40800 x f —(+87)** x{1+87) [ 84 = 40800 X 4:31213 =175935 coof of goods sold - 100,000 Date Particular Debit Idec 31, Lease oreceivable cost of goods sold sale revenue Credit 175935 2018 120,000 55935 inventory 120,000 40800 Idec 31, 2018 Cash Lease receivable 40800 Bealla) vowinna cotries for Gelberger en dec. 31. 2018 s . To record the receipt Deposit liability = 40800

Page. No 1 Credits Date Debit dec 31, Porbicular cash Deposit liabiliday 40800 2016 40800 probable, In this journal entry, the drents collection is not received will be credited to deposit - cash