Recording Sales-Type Lease, Unguaranteed Residual Value-Lessor estimates that the equipment will have an unguaranteed residual...
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Recording Sales-Type Lease, Unguaranteed Residual Value-Lessor estimates that the equipment will have an unguaranteed residual value of $8,000. Hint: Underlying asset's carrying value equals its fair value at lease commencement. a. Compute the annual payment calculated by the lessor. - Note: Round answer to the nearest dollar. - Note: Do not use a negative sign with your answer. b. Prepare a schedule of the lease receivable for the lessor for the full lease term. - Note: Round each amount in the schedule to the nearest whole dollar. Use the rounded amount for later calculations in the schedule. c. Provide journal entries for Year 1 and Year 2 for the lessor assuming that the equipment is held in the lessor's Inventory account. - Note: Round your answers to the nearest whole dollar. d. Record the entry on December 31 of Year 5 for the return of the equipment assuming the equipment had a fair value of $8,000. Recording Sales-Type Lease, Unguaranteed Residual Value-Lessor estimates that the equipment will have an unguaranteed residual value of $8,000. Hint: Underlying asset's carrying value equals its fair value at lease commencement. a. Compute the annual payment calculated by the lessor. - Note: Round answer to the nearest dollar. - Note: Do not use a negative sign with your answer. b. Prepare a schedule of the lease receivable for the lessor for the full lease term. - Note: Round each amount in the schedule to the nearest whole dollar. Use the rounded amount for later calculations in the schedule. c. Provide journal entries for Year 1 and Year 2 for the lessor assuming that the equipment is held in the lessor's Inventory account. - Note: Round your answers to the nearest whole dollar. d. Record the entry on December 31 of Year 5 for the return of the equipment assuming the equipment had a fair value of $8,000
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Recording Sales-Type Lease, Unguaranteed Residual Value-Lessor estimates that the equipment will have an unguaranteed residual value of $8,000. Hint: Underlying asset's carrying value equals its fair value at lease commencement. a. Compute the annual payment calculated by the lessor. - Note: Round answer to the nearest dollar. - Note: Do not use a negative sign with your answer. b. Prepare a schedule of the lease receivable for the lessor for the full lease term. - Note: Round each amount in the schedule to the nearest whole dollar. Use the rounded amount for later calculations in the schedule. c. Provide journal entries for Year 1 and Year 2 for the lessor assuming that the equipment is held in the lessor's Inventory account. - Note: Round your answers to the nearest whole dollar. d. Record the entry on December 31 of Year 5 for the return of the equipment assuming the equipment had a fair value of $8,000. Recording Sales-Type Lease, Unguaranteed Residual Value-Lessor estimates that the equipment will have an unguaranteed residual value of $8,000. Hint: Underlying asset's carrying value equals its fair value at lease commencement. a. Compute the annual payment calculated by the lessor. - Note: Round answer to the nearest dollar. - Note: Do not use a negative sign with your answer. b. Prepare a schedule of the lease receivable for the lessor for the full lease term. - Note: Round each amount in the schedule to the nearest whole dollar. Use the rounded amount for later calculations in the schedule. c. Provide journal entries for Year 1 and Year 2 for the lessor assuming that the equipment is held in the lessor's Inventory account. - Note: Round your answers to the nearest whole dollar. d. Record the entry on December 31 of Year 5 for the return of the equipment assuming the equipment had a fair value of $8,000 