Neely BBQ leased equipment from Smoke Industries on January 1, 2021. Smoke Industries had manufactured the...
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Neely BBQ leased equipment from Smoke Industries on January 1, 2021. Smoke Industries had manufactured the equipment at a cost of $810,000. (FV of $1. PV of $1, EVA of $1, PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Other information: Lease term Annual payments Life of asset Rate the lessor charges 4 years $360,000 beginning Jan. 1, 2021, and at Dec. 31, 2021, 2022, and 2023 4 years 8% Required: 1. Prepare the appropriate entries for Neely BBQ (Lessee) on January 1, 2021, and December 31, 2021. 2. Prepare the appropriate entries for Smoke Industries (Lessor) on January 1, 2021, and December 31, 2021. Assume that control is transferred to the lessee. 3. Prepare the appropriate entries for Smoke Industries (Lessor) on January 1, 2021, and December 31, 2021. Assume that control is not transferred to the lessee. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the appropriate entries for Neely BBQ (Lessee) on January 1, 2021, and December 31, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amounts.) Required 1 Required 2 Required 3 Prepare the appropriate entries for Neely BBQ (Lessee) on January 1, 2021, and December 31, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amounts.) View transaction list Journal entry worksheet 2 3 4 Record the amortization of right-to-use asset for Neely BBQ. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2021 Right-of-use asset Record entry Clear entry View general journal Neely BBQ leased equipment from Smoke Industries on January 1, 2021. Smoke Industries had manufactured the equipment at a cost of $810,000. (FV of $1. PV of $1, EVA of $1, PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Other information: Lease term Annual payments Life of asset Rate the lessor charges 4 years $360,000 beginning Jan. 1, 2021, and at Dec. 31, 2021, 2022, and 2023 4 years 8% Required: 1. Prepare the appropriate entries for Neely BBQ (Lessee) on January 1, 2021, and December 31, 2021. 2. Prepare the appropriate entries for Smoke Industries (Lessor) on January 1, 2021, and December 31, 2021. Assume that control is transferred to the lessee. 3. Prepare the appropriate entries for Smoke Industries (Lessor) on January 1, 2021, and December 31, 2021. Assume that control is not transferred to the lessee. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the appropriate entries for Neely BBQ (Lessee) on January 1, 2021, and December 31, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amounts.) Required 1 Required 2 Required 3 Prepare the appropriate entries for Neely BBQ (Lessee) on January 1, 2021, and December 31, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amounts.) View transaction list Journal entry worksheet 2 3 4 Record the amortization of right-to-use asset for Neely BBQ. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2021 Right-of-use asset Record entry Clear entry View general journal
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Answer rating: 100% (QA)
Sol Period Lease Payment Pv Factor 8 Present Value 1 360000 1 360000 2 360000 092593 333335 3 360000 ... View the full answer
Related Book For
Accounting
ISBN: 978-0176509743
Volume 1, 2nd canadian Edition
Authors: Carl warren, James Reeve, Jonathen Duchac, Sheila Elworthy,
Posted Date:
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