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ACCT 231 ACCT231 ACCT/231 Wk10Hmwk.docx – Katja Iversen Week 10 Homework

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ACCT 231 ACCT231 ACCT/231 Wk10Hmwk.docx – Katja Iversen Week 10 Homework

Katja Iversen

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

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ACCT 231 ACCT231 ACCT/231

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ACCT 231 ACCT231 ACCT/231 Wk10Hmwk.docx - Katja Iversen Week 10 Homework, Champlain College

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ACCT 231 ACCT231 ACCT/231 Wk10Hmwk.docx – Katja Iversen Week 10 Homework

Katja Iversen

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

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

ACCT 231 ACCT231 ACCT/231 Wk10Hmwk.docx – Katja Iversen Week 10 Homework

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