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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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