Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 1. the lessee makes a lease payment of $73,600 t

1. The lessee makes a lease payment of $73,600 to the lessor for...

80.2K

Verified Solution

Question

Accounting

1. The lessee makes a lease payment of $73,600 to the lessor for equipment in an operating lease transaction.
2. Sandhill Company leases equipment from Noble Construction, Inc. The present value of the lease payments is $644,000. The lease qualifies as a capital lease.

Prepare the journal entries that the lessee should make to record the above transactions. (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 0 for the amounts.)

No.

Account Titles and Explanation

Debit

Credit

1.

enter an account title to record rent payment

enter a debit amount

enter a credit amount

enter an account title to record rent payment

enter a debit amount

enter a credit amount
(To record rent payment.)

2.

enter an account title to record lease asset and liability

enter a debit amount

enter a credit amount

enter an account title to record lease asset and liability

enter a debit amount

enter a credit amount
(To record lease asset and liability.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students