Refer to Practice 15-6. Assume that the lease is to be accounted for as a capital lease.
Question:
Refer to Practice 15-6. Assume that the lease is to be accounted for as a capital lease. Also assume that the leased asset is to be amortized over the 12-year asset life rather than the 10-year lease term. Make the journal entries necessary on the books of the lessee company
(1) On the lease-signing date and
(2) At the end of the first year, including the recording of the first lease payment.
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Related Book For
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
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