Week 10 Homework
E21-4
a.Jan 1, 2017
Lease Receivable 160,000
Equipment 160,000
Dec 31, 2017
Cash 89,571
Costs Payable 5,000
Lease Receivable 68,571
Interest Revenue 16,000
Dec 31, 2018
Cash 89,571
Costs Payable 5,000
Lease Receivable 75,429
Interest Revenue 9,142
b.
Dec 31, 2018
Cash 16,000
Lease Receivable 16,000
E21-5
a.For the lessor, this is a direct financing lease. The lessee should use the capital lease method. This means that the asset and liability should be recorded at the present value of the minimum lease payments. Because the life and lease of the
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