Use the information for Wing Corporation and Sharda Inc. from BE20-23. Assume that Sharda, the lessor, has

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Use the information for Wing Corporation and Sharda Inc. from BE20-23. Assume that Sharda, the lessor, has a June 30 year end. Prepare Sharda's entry on August 15, 2017 and any adjusting entry needed on June 30, 2018.

In BE20-23

Wing Corporation enters into a lease with Sharda Inc., a lessor, on August 15, 2017 that does not transfer ownership or contain a bargain purchase option, and it is not for specialized equipment. Both Wing and Sharda use IAS 17. The lease covers three years of the equipment's eight-year useful life, and the present value of the minimum lease payments is less than 90% of the equipment's fair value. Prepare Wing's journal entry to record its August 15, 2017 annual lease payment of $31,500. Wing has a November 30 year end.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Intermediate Accounting

ISBN: 978-1119048541

11th Canadian edition Volume 2

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy

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