Use the information for Lai Corporation from BE20–11. Assume that instead of costing Lai $175,000, the equipment was manufactured by Lai at a cost of $137,500 and the equipment’s regular selling price is $175,000. Prepare Lai Corporation’s January 1, 2011 journal entries at the inception of the lease and the entry at December 31, 2011, to record interest.
Answer to relevant QuestionsRegina Corporation, which uses private enterprise GAAP, manufactures replicators. On May 29, 2011, it leased to Barnes Limited a replicator that cost $265,000 to manufacture and usually sells for $410,000. The lease ...Use the information provided in BE20–18 about Lessee Corp. Assume that title to the property will not be transferred to Lessee by the end of the lease term and that there is also no bargain purchase option, but that the ...Use the information for Merrill Corporation from BE20–6. Assume that for Moxey Corporation, the lessor, collectibility is reasonably predictable, there are no important uncertainties concerning costs, and the machinery’s ...The following facts are for a non-cancellable lease agreement between Hebert Corporation and Russell Corporation, a lessee: Inception date July ..................... 1, 2011 Annual lease payment due at the beginning ...Rancour Ltd., which uses private enterprise GAAP, recently expanded its operations into an adjoining municipality and, on March 30, 2011, signed a 15-year lease with its Municipal Industrial Commission (MIC). The property ...
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