Question: Refer to Practice 15 12 Assume that the lease is accounted for

Refer to Practice 15-12. Assume that the lease is accounted for as a direct financing lease instead of as an operating lease. The interest rate implicit in the lease is 15%. Make the journal entries necessary on the lessor’s books to record
(1) The signing of the lease,
(2) The receipt of the initial $2,600 lease payment on the lease signing date, and
(3) The recognition of interest revenue at the end of the first year.

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  • CreatedApril 07, 2012
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