Kermit Manufacturing Company leased equipment from Unscrupulous Leasing on January 1, 2011. Other Information Lease Term 6

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Kermit Manufacturing Company leased equipment from Unscrupulous Leasing on January 1, 2011.

Other Information

Lease Term 6 years

Annual Payments $50,000 on 1/1/ each year

Life of Asset 6 years

Implicit Int Rate 8%

Incremental Rate 8%

Required:

Prepare appropriate journal entries for Kermit Manufacturing for 2011 and 2012. Assume straight-line depreciation and a December 31 year-end. First payment will be made at lease inception.

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Intermediate Accounting

ISBN: 9781259722660

9th Edition

Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas

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Question Posted: Apr 18, 2012 09:02 AM

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Kermit Manufacturing Company leased equipment from Unscrupulous Leasing on January 1, 2011. Other Information Lease Term 6

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