Your answer is partially correct. On January 1, 2025, Carla Vista Animation sold a truck to Sandhill Finance for $41,000 and immediately leased it back. The truck was carried on Carla Vista's books at $34,000. The term of the lease is 5 years, there is no bargain purchase option, and title does not transfer to Carla Vista at lease-end. The lease requires five equal rental payments of $9.470 at the end of each year (first payment on January 1, 2026). The appropriate rate of interest is 5%, the truck has a useful life of 5 years, with no expected residual value at the end of the lease term Prepare Carla Vista's 2025 journal entries. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to O decimal places, eg 5,275, Record journal entries in the order presented in the problem)

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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culation purposes, use 5 decimal places as displayed in the factortable provided and round final answers to 0 decimal places, e.g. 5,275.
cord journal entries in the order presented in the problem.)
ck here to view factor tables.
Date
1/1/25
12/31/25
Account Titles and Explanation
Cash
Lease Receivable
Rent Revenue
Debit
41000
9470
Credit
41000
9470
Transcribed Image Text:culation purposes, use 5 decimal places as displayed in the factortable provided and round final answers to 0 decimal places, e.g. 5,275. cord journal entries in the order presented in the problem.) ck here to view factor tables. Date 1/1/25 12/31/25 Account Titles and Explanation Cash Lease Receivable Rent Revenue Debit 41000 9470 Credit 41000 9470
2
Your answer is partially correct.
On January 1, 2025, Carla Vista Animation sold a truck to Sandhill Finance for $41,000 and immediately leased it back. The truck was
carried on Carla Vista's books at $34,000. The term of the lease is 5 years, there is no bargain purchase option, and title does not
transfer to Carla Vista at lease-end. The lease requires five equal rental payments of $9.470 at the end of each year (first payment on
January 1, 2026). The appropriate rate of interest is 5%, the truck has a useful life of 5 years, with no expected residual value at the end
of the lease term
Prepare Carla Vista's 2025 journal entries. (List all debit entries before credit entries. Credit account titles are automatically indented when
the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. For
calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to O decimal places, eg. 5,275,
Record journal entries in the order presented in the problem)
Click here to view factor tables.
Date:
Account Titles and Explanation
Debit
Credit
Cut 204 Homework Bule Leaseback Transactions
Transcribed Image Text:2 Your answer is partially correct. On January 1, 2025, Carla Vista Animation sold a truck to Sandhill Finance for $41,000 and immediately leased it back. The truck was carried on Carla Vista's books at $34,000. The term of the lease is 5 years, there is no bargain purchase option, and title does not transfer to Carla Vista at lease-end. The lease requires five equal rental payments of $9.470 at the end of each year (first payment on January 1, 2026). The appropriate rate of interest is 5%, the truck has a useful life of 5 years, with no expected residual value at the end of the lease term Prepare Carla Vista's 2025 journal entries. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to O decimal places, eg. 5,275, Record journal entries in the order presented in the problem) Click here to view factor tables. Date: Account Titles and Explanation Debit Credit Cut 204 Homework Bule Leaseback Transactions
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