On January 1, 2020, Blossom Corp. leased a building to FRN Inc. Both companies follow ASPE....

  
 

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On January 1, 2020, Blossom Corp. leased a building to FRN Inc. Both companies follow ASPE. The lease arrangement was for 10 years. The leased building cost $4,700,000 and was purchased for cash on January 1, 2020. The building was to be depreciated on a straight-line basis over its estimated economic life of 50 years. The lease called for payments of $284,000 per year, made at the end of the year. Property tax expense of $75,000 and insurance expense of $12,000 on the building were incurred by Blossom in the first year. Payment on these two items was made at the end of the year. Prepare the journal entries made by Blossom Corp. in 2020 assuming Blossom prepares financial statements annually. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation (To record purchase of building.) (To record collection of rent.) Debit Credit (To record collection of rent.) (To record depreciation expense.) (To record payment of insurance and property taxes.) Prepare the journal entry made by FRN Inc. in 2020 assuming FRN prepares financial statements annually. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles Prepare the journal entry made by FRN Inc. in 2020 assuming FRN prepares financial statements annually. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter o for the amounts.) Date Dec. 31, 2020 Account Titles and Explanation (To record rent payment.) Debit Credit On January 1, 2020, Blossom Corp. leased a building to FRN Inc. Both companies follow ASPE. The lease arrangement was for 10 years. The leased building cost $4,700,000 and was purchased for cash on January 1, 2020. The building was to be depreciated on a straight-line basis over its estimated economic life of 50 years. The lease called for payments of $284,000 per year, made at the end of the year. Property tax expense of $75,000 and insurance expense of $12,000 on the building were incurred by Blossom in the first year. Payment on these two items was made at the end of the year. Prepare the journal entries made by Blossom Corp. in 2020 assuming Blossom prepares financial statements annually. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation (To record purchase of building.) (To record collection of rent.) Debit Credit (To record collection of rent.) (To record depreciation expense.) (To record payment of insurance and property taxes.) Prepare the journal entry made by FRN Inc. in 2020 assuming FRN prepares financial statements annually. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles Prepare the journal entry made by FRN Inc. in 2020 assuming FRN prepares financial statements annually. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter o for the amounts.) Date Dec. 31, 2020 Account Titles and Explanation (To record rent payment.) Debit Credit

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To record the purchase of the building Date Account Titles and Exp... View the full answer