Alessor received a cash rental payment from a lessee at the end of the carent period. The assel was leased at the beginning of the current period and was properly recorded as a sales-type Inase Which journal entry should the lessor use to record the payment? Ⓒ Credit Cash; Debit Lease Liability: Credit Interest Expense O Debit Interest Revenue; Debit Lease Receivable; Credit Cash O Debit Cash; Credit Interest Revenue: Credit Lease Receivable O Debit Interest Expense; Credit Cash; Credit Lease Liability NEXT > BOOKMARK

Recording Entries for Finance Lease-No Residual On January 1 of Year 1, Ashe Company entered into a five-year equipment lease (with no renewal options) requiring payments of $28,000, with the first payment due immediately. The lessor's implicit interest rate, known to Ashe, is 6%. Ownership of the equipment remains with the lessor at expiration of the lease. There is no option to purchase the property at the end of the lease term and the equipment is expected to have no residual value. The equipment has an estimated economic life of five years. a. How would Ashe Company classify the lease? Finance lease ◆ b. Prepare a schedule of the lease liability for the 5-year lease term. • Note: Round each amount in the schedule to the nearest whole dollar. Use the rounded amount for later calculations in the schedule. Date Jan. 1, Year 1 Jan. 1, Year 1 $ Jan. 1, Year 2 Jan. 1, Year 3 Jan. 1, Year 4 Jan. 1, Year 5 Total $ Lease Payment 0 x $ 0 x 0 x 0 x 0 x 0 $ Interest on Liability Lease…

Which of the following would NOT be shown in the Statement of Profit or Loss? Expired portion of insurance Withdrawal of supplies by the owner Depreciation of fixed assets for the period Services rendered to a customer on account

A lease transfers the right to use an identified asset for a period of time in exchange for rental payments. True False

When a lessor receives cash on an operating lease, which of the following accounts is increased? A. Lease Payable B. Interest Revenue: Leases C. Lease Receivable D. Rent Revenue

2). A landlord records the collection of a tenant's security deposit as a(n):            1. liability            2. prepaid expenses            3.  contingent liability            4. contra liability 1). Which of the following statements regarding accounting for leases is true?         a. If the lease term is one year or longer, a liability must be recognized.        b. leases accounting rule will result in more assets and liabilities being recognized on the balance sheet    c. Leasing will likely remain popular because leases do not require a large initial outlay of cash      d. All of these are correct     e. None of these are correct   `

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Larkspur Leasing Company signs a lease agreement on January 1, 2025, to lease electronic equipment to Crane Company. The term of the non-cancelable lease is 2 years, and payments are required at the end of each year. The following information relates to this agreement. 1. Crane has the option to purchase the equipment for $27,000 upon termination of the lease. It is not reasonably certain that Crane will exercise this option. 2. The equipment has a cost of $330, 000 and fair value of $368,000 to Larkspur Leasing. The useful economic life is 2 years, with a residual value of $27,000. 3. Larkspur Leasing desires to earn a return of 6% on its investment. 4. Collectibility of the payments by Larkspur Leasing is probable. Prepare the journal entries on the books of Larkspur Leasing to record the payments received under the lease and to recognize income for the years 2025 and 2026. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is…

Crane Leasing Company signs an agreement on January 1, 2025, to lease equipment to Cullumber Company. The following information relates to this agreement. 1. 2. 3. 4. 5. The term of the non-cancelable lease is 6 years with no renewal option. The equipment has an estimated economic life of 6 years. The cost of the asset to the lessor is $230,000. The fair value of the asset at January 1, 2025, is $230,000. The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $24,339, none of which is gu guaranteed. The agreement requires equal annual rental payments, beginning on January 1, 2025. Collectibility of the lease payments by Crane is probable.

On January 1, 2024, QuickStream Communications leased telephone equipment from Digium, Incorporated Digium's cash selling price for the equipment is $1,959,867. The lease agreement specifies six annual payments of $450,000 beginning December 31, 2024, and on each December 31 thereafter through 2029. The six-year lease is equal to the estimated useful life of the equipment. The contract specifies that lease payments for each year will increase by the higher of (a) the increase in the Consumer Price Index for the preceding year or (b) 2%. The CPI at the beginning of the lease is 120. Digium routinely leases equipment to other firms. The interest rate in these lease arrangements is 10%. Note: Use tables, Excel, or a financial calculator. ( FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Required: Prepare the appropriate journal entries for QuickStream to record the lease at its beginning date of January 1, 2024 - - 1 Record the beginning of the lease for QuickStream…