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Elf Leasing purchased a machine for $560,000 and leased it to IGA, Incorporated on January 1, 2024. Lease description: Quarterly rental payments Lease term No residual value; no BPO Economic life of machine Implicit interest rate and lessee's incremental borrowing rate Fair value of asset $33, 576 at beginning of each period 5 years (20 quarters) 5 years 8% $560,000 Required: Prepare appropriate entries for both IGA and Elf Leasing from the beginning of the lease through the second rental payment on April 1, 2024. Amortization is recorded at the end of each fiscal year (December 31). Complete this question by entering your answers in the tabs below. Lessee Lessor Prepare appropriate entries for IGA from the beginning of the lease through the second rental payment on April 1, 2024. Amortization is recorded at the end of each fiscal year (December 31). Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amounts. View transaction list Journal entry worksheet < 1 2 3 Record the entry at the inception of the lease for IGA (Lessee). Note: Enter debits before credits. Date January 01 201 General Journal Debit Credit > Show less A

Elf Leasing purchased a machine for $560,000 and leased it to IGA, Incorporated on January 1, 2024. Lease description: Quarterly rental payments Lease term No residual value; no BPO Economic life of machine Implicit interest rate and lessee's incremental borrowing rate Fair value of asset $33, 576 at beginning of each period 5 years (20 quarters) 5 years 8% $560,000 Required: Prepare appropriate entries for both IGA and Elf Leasing from the beginning of the lease through the second rental payment on April 1, 2024. Amortization is recorded at the end of each fiscal year (December 31). Complete this question by entering your answers in the tabs below. Lessee Lessor Prepare appropriate entries for IGA from the beginning of the lease through the second rental payment on April 1, 2024. Amortization is recorded at the end of each fiscal year (December 31). Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amounts. View transaction list Journal entry worksheet < 1 2 3 Record the entry at the inception of the lease for IGA (Lessee). Note: Enter debits before credits. Date January 01 201 General Journal Debit Credit > Show less A

Intermediate Accounting: Reporting And Analysis
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 1E: Determining Type of Lease and Subsequent Accounting On January 1, 2019, Caswell Company signs a...
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Elf Leasing purchased a machine for $560,000 and leased it to IGA, Incorporated on January 1, 2024. Lease description: Quarterly rental payments Lease term No residual value; no BPO Economic life of machine Implicit interest rate and lessee's incremental borrowing rate Fair value of asset $33, 576 at beginning of each period 5 years (20 quarters) 5 years 8% $560,000 Required: Prepare appropriate entries for both IGA and Elf Leasing from the beginning of the lease through the second rental payment on April 1, 2024. Amortization is recorded at the end of each fiscal year (December 31). Complete this question by entering your answers in the tabs below. Lessee Lessor Prepare appropriate entries for IGA from the beginning of the lease through the second rental payment on April 1, 2024. Amortization is recorded at the end of each fiscal year (December 31). Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amounts. View transaction list Journal entry worksheet < 1 2 3 Record the entry at the inception of the lease for IGA (Lessee). Note: Enter debits before credits. Date January 01 201 General Journal Debit Credit > Show less A
Transcribed Image Text:Elf Leasing purchased a machine for $560,000 and leased it to IGA, Incorporated on January 1, 2024. Lease description: Quarterly rental payments Lease term No residual value; no BPO Economic life of machine Implicit interest rate and lessee's incremental borrowing rate Fair value of asset $33, 576 at beginning of each period 5 years (20 quarters) 5 years 8% $560,000 Required: Prepare appropriate entries for both IGA and Elf Leasing from the beginning of the lease through the second rental payment on April 1, 2024. Amortization is recorded at the end of each fiscal year (December 31). Complete this question by entering your answers in the tabs below. Lessee Lessor Prepare appropriate entries for IGA from the beginning of the lease through the second rental payment on April 1, 2024. Amortization is recorded at the end of each fiscal year (December 31). Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amounts. View transaction list Journal entry worksheet < 1 2 3 Record the entry at the inception of the lease for IGA (Lessee). Note: Enter debits before credits. Date January 01 201 General Journal Debit Credit > Show less A
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