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Question 17 Larkspur Leasing Company signs a lease agreement on January 1, 2020, to lease electronic equipment to Crane Company. The term of the non-cancelab required at the end of each year. The following information relates to this agreement: 1. 2. 3. 4. Crane has the option to purchase the equipment for $15,500 upon termination of the lease. It is not reasonably certain that Crane will exercise this The equipment has a cost of $110,000 and fair value of $158,500 to Larkspur Leasing. The useful economic life is 2 years, with a residual value of Larkspur Leasing desires to earn a return of 5% on its investment. Collectibility of the payments by Larkspur Leasing is probable. Click here to view factor tables. (a) Prepare the journal entries on the books of Larkspur Leasing to reflect the payments received under the lease and to recognize income for the years 202 automatically indented when amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in answers to 0 decimal places e.g. 5,275.) Date Account Titles and Explanation Debit Credit Click if you would like to Show Work for this question: Open Show Work Question 17 Larkspur Leasing Company signs a lease agreement on January 1, 2020, to lease electronic equipment to Crane Company. The term of the non-cancelab required at the end of each year. The following information relates to this agreement: 1. 2. 3. 4. Crane has the option to purchase the equipment for $15,500 upon termination of the lease. It is not reasonably certain that Crane will exercise this The equipment has a cost of $110,000 and fair value of $158,500 to Larkspur Leasing. The useful economic life is 2 years, with a residual value of Larkspur Leasing desires to earn a return of 5% on its investment. Collectibility of the payments by Larkspur Leasing is probable. Click here to view factor tables. (a) Prepare the journal entries on the books of Larkspur Leasing to reflect the payments received under the lease and to recognize income for the years 202 automatically indented when amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in answers to 0 decimal places e.g. 5,275.) Date Account Titles and Explanation Debit Credit Click if you would like to Show Work for this question: Open Show Work

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