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Grouper, Inc. owns equipment that cost $114,000 and has a useful life of 10 years...

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Accounting

Grouper, Inc. owns equipment that cost $114,000 and has a useful life of 10 years with no salvage value. On January 1, 2017, Grouper leases the equipment to Morgan Corporation for one year with one rental payment of $16,700 on January 1. Prepare Groupers 2017 journal entries. (Credit account titles are automatically indented when 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.)

Date

Account Titles and Explanation

Debit

Credit
January 1

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount
(To record receipt of lease payment)
December 31

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount
(To record the recognition of the revenue each period)

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount
(To record depreciation expenses on the leased asset)

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