Sanders Storage owns a large warehouse that can be subdivided to accommodate storage spaces of various sizes using movable walls. Sanders contracts with companies to provide them storage space. Christina Containers Corporation (CCC) contracted with Sanders to provide storage for CCC's excess containers. The contract specifies that CCC's containers will be kept in an identified space in the warehouse, providing 2,500 square feet for a four-year period. The contract also specifies that CCC's containers must be stored at a specific temperature. Sanders has only one location in its warehouse with an HVAC system capable of maintaining the required temperatures. CCC can modify the space with shelving and equipment needed to add, move, and remove containers. Sanders cannot switch locations of the containers or modify the space without CCC's consent. CCC paid $14,200 on April 1, 2024, for the first year's accommodations. The market rate of interest is 4%. 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 entry(s) for Christina Containers Corporation on April 1, the commencement of the agreement. 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.
Sanders Storage owns a large warehouse that can be subdivided to accommodate storage spaces of various sizes using movable walls. Sanders contracts with companies to provide them storage space. Christina Containers Corporation (CCC) contracted with Sanders to provide storage for CCC's excess containers. The contract specifies that CCC's containers will be kept in an identified space in the warehouse, providing 2,500 square feet for a four-year period. The contract also specifies that CCC's containers must be stored at a specific temperature. Sanders has only one location in its warehouse with an HVAC system capable of maintaining the required temperatures. CCC can modify the space with shelving and equipment needed to add, move, and remove containers. Sanders cannot switch locations of the containers or modify the space without CCC's consent. CCC paid $14,200 on April 1, 2024, for the first year's accommodations. The market rate of interest is 4%. 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 entry(s) for Christina Containers Corporation on April 1, the commencement of the agreement. 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.
Chapter16: Accounting Periods And Methods
Section: Chapter Questions
Problem 43P
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Transcribed Image Text:Sanders Storage owns a large warehouse that can be subdivided to accommodate storage spaces of various sizes using movable
walls. Sanders contracts with companies to provide them storage space. Christina Containers Corporation (CCC) contracted with
Sanders to provide storage for CCC's excess containers. The contract specifies that CCC's containers will be kept in an identified
space in the warehouse, providing 2,500 square feet for a four-year period. The contract also specifies that CCC's containers must be
stored at a specific temperature. Sanders has only one location in its warehouse with an HVAC system capable of maintaining the
required temperatures. CCC can modify the space with shelving and equipment needed to add, move, and remove containers.
Sanders cannot switch locations of the containers or modify the space without CCC's consent. CCC paid $14,200 on April 1, 2024, for
the first year's accommodations. The market rate of interest is 4%.
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 entry(s) for Christina Containers Corporation on April 1, the commencement of the agreement.
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
Record the beginning of the lease.
Note: Enter debits before credits.
Date
April 01,
2024
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
>
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