TB Problem 15 204 (Algo) Big Bucks leased equipment to Big Bucks leased equipment to Shannon Company on July 1, 2024 The lease payments were calculated to provide the lessor a 10 return Ten annual lease payments of $45,000 are due each July 1, beginning July 1, 2024 Note Use tables, Excel, or a financial calculator (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Required Prepare the journal entries to record the lease by Shannon on July 1, 2024, and on December 31, 2024, the end of the reporting period Consider this to be a finance lease Prepare the journal entries to record the lease by Shannon on July 1, 2024, and on December 31, 2024, the end of the reporting period Consider this to be an operating lease Note If no entry is required for a transaction event, select No journal entry required in the first account field Round your answers to the nearest whole dollar

The Answer is in the image, click to view ...

Question: TB Problem 15-204 (Algo) Big Bucks leased equipment to Big Bucks leased equipment to Shannon Company on July 1, 2024. The lease payments were calculated

TB Problem 15-204 (Algo) Big Bucks leased equipment to

Big Bucks leased equipment to Shannon Company on July 1, 2024. The lease payments were calculated to provide the lessor a 10% return. Ten annual lease payments of $45,000 are due each July 1, beginning July 1, 2024.

Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)

Required:

Prepare the journal entries to record the lease by Shannon on July 1, 2024, and on December 31, 2024, the end of the reporting period. Consider this to be a finance lease.
Prepare the journal entries to record the lease by Shannon on July 1, 2024, and on December 31, 2024, the end of the reporting period. Consider this to be an operating lease.

Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

please do all parts 2 requierments 4 parts each Big Bucks leased equipment to Shannon Company on July 1, 2021. The lease payments were calculated to provide the lessor a 9% return. Ten annual lease...

Big Bucks leased equipment to Shannon Company on July 1, 2024. The lease payments were calculated to provide the lessor a 8% return. Nine annual lease payments of $26,000 are due each July 1 ,...

Right-of-use asset - correct Lease payable - correct 2. Record the cash payment Lease payable correct Cash - correct 3. Record the adjusting entry. Interest expense correct Interest payable correct...

1.Record the lease. 2.Record the cash payment. 3.Record the interest expense. 4.Record the amortization expense Required 2 1.Record the lease. 2.Record the cash payment. 3.Record the interest...

Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...

1. Do you think there is sufficient evidence in this case to suggest that Deluxe Seating needs to consolidate its financial statements with Eagle, Inc.? Explain your reasoning answer docslide...

Part One Big Als Pizza, Inc., a new subsidiary of Big Als Pizza Emporium, has been established to produce partially baked, flash-frozen, 16-inch meat pizzas to be sold wholesale to grocery and...

FILE TOOLS VIEW 6401819_1_writing-case--4 - Word (Product Activation Failed) Financing Early Operations Musk's first entrepreneurial venture was to join up with his brother, Kimbal, and establish...

OK, here is the problem. It is supposed to be done in excel. E-mail me if you have any questions. Thank you! ashley_bates05@hotmail.com Part One Big Al's Pizza, Inc., a new subsidiary of Big Al's...

Part One Big Als Pizza, Inc., a new subsidiary of Big Als Pizza Emporium, has been established to produce partially baked, flash-frozen, 16-inch meat pizzas to be sold wholesale to grocery and...

May an Ethiopian national sue a firm based in Louisiana in federal court in Louisiana? If so, what substantive law will apply?

Uses series to solve 2D^2 y + xy + y = 0

Question 1 3 pts A swap bank has a quote for a five - year swap with semiannual payments is 3 . 5 0 - 3 . 6 0 percent. A company with a fixed borrowing cost of 5 % can get a float rate borrowing cost...

A hula hoop and solid disc of equal radii are rolled, from rest and without slipping, down an incline plane. Which one will reach the bottom of the inclined plane first? Explain.

Distinguish among the adjusted balance, previous balance, and average daily balance methods of calculating the cost of open-end credit.

Nike, Inc., is a leading manufacturer and marketer of sport and fashion footwear incorporated in 1968 and headquartered in Beaverton, Oregon, its brand name has become almost univer- sal, delivering...

Determine the cost of credit by calculating interest using various interest formulas.