Record the following 13 entries: 1. 01.01.2024 Record the cash received. 2. 01.01.2024 Record the payment of initial direct costs. 3. 12.31.2024 Record the cost of the lease. 4. 12.31.2024 Record the depreciation. 5. 12.31.2024 Record the lease revenue. 6. 01.01.2025 Record the cash received. 7. 12.31.2025 Record the cost of the lease. 8. 12.31.2025 Record the depreciation. 9. 12.31.2025 Record the lease revenue. 10. 01.01.2026 Record the cash received. 11. 12.31.2026 Record the cost of the lease. 12. 12.31.2026 Record the depreciation. 13. 12.31.2026 Record the lease revenue.
Record the following 13 entries: 1. 01.01.2024 Record the cash received. 2. 01.01.2024 Record the payment of initial direct costs. 3. 12.31.2024 Record the cost of the lease. 4. 12.31.2024 Record the depreciation. 5. 12.31.2024 Record the lease revenue. 6. 01.01.2025 Record the cash received. 7. 12.31.2025 Record the cost of the lease. 8. 12.31.2025 Record the depreciation. 9. 12.31.2025 Record the lease revenue. 10. 01.01.2026 Record the cash received. 11. 12.31.2026 Record the cost of the lease. 12. 12.31.2026 Record the depreciation. 13. 12.31.2026 Record the lease revenue.
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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Question
14.
The following relate to an operating lease agreement: The lease term is three years, beginning January 1, 2024. The leased asset cost the lessor $840,000 and had a useful life of eight years with no residual value. The lessor uses straight-line depreciation for its depreciable assets. Annual lease payments at the beginning of each year were $143,000. Incremental costs of negotiating and consummating the completed lease transaction incurred by the lessor were $3,000.
Record the following 13 entries:
1. 01.01.2024 Record the cash received.
2. 01.01.2024 Record the payment of initial direct costs.
3. 12.31.2024 Record the cost of the lease.
4. 12.31.2024 Record the depreciation.
5. 12.31.2024 Record the lease revenue.
6. 01.01.2025 Record the cash received.
7. 12.31.2025 Record the cost of the lease.
8. 12.31.2025 Record the depreciation.
9. 12.31.2025 Record the lease revenue.
10. 01.01.2026 Record the cash received.
11. 12.31.2026 Record the cost of the lease.
12. 12.31.2026 Record the depreciation.
13. 12.31.2026 Record the lease revenue.
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