Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN: 9781337788281
Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher: Cengage Learning
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Chapter 20, Problem 14E
Lessee and Lessor Accounting Issues The following information is available for a noncancelable lease of equipment entered into on March 1, 2019. The lease is classified as a sales-type lease by the lessor (Anson Company) and as a finance lease by the lessee (Bullard Company). Assume that the lease payments are nude at the beginning of each month, interest and straight-line
Required:
- 1. Record the lease (including the initial receipt of $2,000) and the receipt of the second and third installments of $2,000 in Anson’s accounts. Carry computations to the nearest dollar.
- 2. Record the lease (including the initial payment of $2,000), the payment of the second and third installments of $2,000, and monthly depreciation in Bullard’s accounts. The lessee records the lease obligation at
net present value . Carry computations to the nearest dollar.
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Chapter 20 Solutions
Intermediate Accounting: Reporting And Analysis
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