18) The Thomson Company (lessee) leased equipment from Columbus Industries on January 1,2021. Columbus(lessor) manufactured the equipment at a cost of $270,000.Other information:Lease termAnnual paymentsLife of assetLessor's implicit interest rateLessee's incremental rate3 years$120,000 beginning Jan. 1, 20213 years8%9%Required:Round your answers to the nearest whole dollar amounts.1. Calculate the amount of lease receivable that Columbus would report in this sales-type lease.Round to nearest dollar. Show calculations. If not, no credit.2. Prepare the appropriate journal entries for Columbus on January 1, 2021. Round to nearestdollar.3. Prepare the adjusting journal entry for Columbus on December 31, 2021. Round to nearestdollar.

A lease is defined as the contract between two parties for use of an asset. The rent which the…

18) The Thomson Company (lessee) leased equipment from Columbus Industries on January 1, 2021. Columbus(lessor) manufactured the equipment at a cost of $270,000. Other information: Lease term Annual payments Life of asset Lessor's implicit interest rate Lessee's incremental rate 3 years $120,000 beginning Jan. 1, 2021 3 years 8% 9% Required: Round your answers to the nearest whole dollar amounts.

18) The Thomson Company (lessee) leased equipment from Columbus Industries on January 1, 2021. Columbus(lessor) manufactured the equipment at a cost of $270,000. Other information: Lease term Annual payments Life of asset Lessor's implicit interest rate Lessee's incremental rate 3 years $120,000 beginning Jan. 1, 2021 3 years 8% 9% Required: Round your answers to the nearest whole dollar amounts.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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