3. On January 1, 20x1, Lessor enters into a 4-year lease of equipment that has a remaining useful life of 15 years. The equipment will revert back to Lessor at the end of the lease term. The annual lease payments, payable at the end of each year, are: P100,000 in 20x1; P120,000 in 20x2; P140,000 in 20x3; and P160,000 in 20x4. As an inducement to enter into the lease, Lessor granted Lessee the first six months of the lease as rent- free. Lessor received a lease bonus of P20,000 from Lessee at lease commencement. I Inubie Requirement: Provide all the journal entries in Lessor's books.

3. On January 1, 20x1, Lessor enters into a 4-year lease of equipment that has a remaining useful life of 15 years. The equipment will revert back to Lessor at the end of the lease term. The annual lease payments, payable at the end of each year, are: P100,000 in 20x1; P120,000 in 20x2; P140,000 in 20x3; and P160,000 in 20x4. As an inducement to enter into the lease, Lessor granted Lessee the first six months of the lease as rent- free. Lessor received a lease bonus of P20,000 from Lessee at lease commencement. I Inubie Requirement: Provide all the journal entries in Lessor's books.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter20: Accounting For Leases

Section: Chapter Questions

Problem 10GI: Owens Company leased equipment for 4 years at 50,000 a year with an option to renew the lease for 6...

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