A finance lease requires 8 annual payments of $25,000 with the first payment at the...
50.1K
Verified Solution
Link Copied!
Question
Accounting
A finance lease requires 8 annual payments of $25,000 with the first payment at the beginning of the lease. The interest rate is 8%. The lessor has acquired the leased equipment for $135,000. The initial entry on the books of the LESSOR would include:
a. credit right-of use asset $135,000
b. credit sales revenue $143,666
c. debit cost of good sold $110,000
d. debit lease receivable $155,159
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: Zin AI - Your personal assistant for all your inquiries!
