90.2K

Verified Solution

Link Copied!

The following relate to an operating lease agreement: The lease term is 3 years, beginning January 1, 2021. The leased asset cost the lessor $900,000 and had a useful life of eight years with no residual value. The lessor uses straight-line depreciation for its depreciable assets. Annual lease payments at the beginning of each year were $148,500. Incremental costs of negotiating and consummating the completed lease transaction incurred by the lessor were $3,900. Required: Prepare the appropriate entries for the lessor from the beginning of the lease through the end of the lease term. (Round your intermediate and final answers to the nearest whole dollar amount. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Journal entry worksheet

.....

• Record the cash received. Jan1st

Journal entry worksheet

.....

• Record the payment of initial direct costs. jan 1st

Journal entry worksheet

.....

• Record the cost of the lease. dec 31st

Journal entry worksheet

.....

• Record the depreciation. dec 31st

Journal entry worksheet

.....

• Record the lease revenue. Dec 31st

Journal entry worksheet

.....

• Record the cash received. jan 1st

Journal entry worksheet

.....

• Record the cost of the lease. Dec31st

Journal entry worksheet

.....

• Record the depreciation. Dec 31st

Journal entry worksheet

.....

.....

• Record the lease revenue. Dec31st

Journal entry worksheet

.....

.....

• Record the cost of the lease. Dec 31st

Journal entry worksheet

.....

• Record the depreciation. Dec 31st

Journal entry worksheet

.....

• Record the lease revenue. Dec 31st

Answer & Explanation Solved by verified expert

See Answer