Q 11 Jetaway (the lessee) enters into a lease of an aircraft. Jetaway incurred and paid...
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Q₁ 11 Jetaway (the lessee) enters into a lease of an aircraft. Jetaway incurred and paid the following costs on the commencement of the lease: $2,000 for legal fees incurred in review of the lease agreement $1,500 for costs of arranging collateral in the event of a default on a lease payment $7,000 for painting the generic exterior of the aircraft, which is not considered to be significant nor is it expected to have significant economic benefit for jetaway. What are the journal entries for incurring these costs? Select the one correct option and then select Submit. Dr Right-of-use asset - $7,000 Dr Operating expenses - $3,500 Cr Cash - $10,500 Dr Operating expenses - $10,500 Cr Cash-$10,500 Dr Right-of-use asset - $2,000 Dr Operating expenses - $8,500 Cr Cash-$10,500 Dr Right-of-use asset-$3,500 Dr Operating expenses - $7,000 Cr Cash-$10,500 Submit Q₁ 11 Jetaway (the lessee) enters into a lease of an aircraft. Jetaway incurred and paid the following costs on the commencement of the lease: $2,000 for legal fees incurred in review of the lease agreement $1,500 for costs of arranging collateral in the event of a default on a lease payment $7,000 for painting the generic exterior of the aircraft, which is not considered to be significant nor is it expected to have significant economic benefit for jetaway. What are the journal entries for incurring these costs? Select the one correct option and then select Submit. Dr Right-of-use asset - $7,000 Dr Operating expenses - $3,500 Cr Cash - $10,500 Dr Operating expenses - $10,500 Cr Cash-$10,500 Dr Right-of-use asset - $2,000 Dr Operating expenses - $8,500 Cr Cash-$10,500 Dr Right-of-use asset-$3,500 Dr Operating expenses - $7,000 Cr Cash-$10,500 Submit
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1 Lessees right to use an asset over the life of a lease is known as Right of use Asse... View the full answer
Related Book For
Fundamental financial accounting concepts
ISBN: 978-0078025365
8th edition
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward
Posted Date:
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