Bailey Company leased equipment from Warren Leasing on January 1, 2019. Warren manufactured the equipment ata...
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Bailey Company leased equipment from Warren Leasing on January 1, 2019. Warren manufactured the equipment ata cost ot $137500. The leane agemt an s finance lease The lease agreement specifies five annual payments of $56.987 beginning January 1, 2019, the beginning of the lense, and at each December 31 thereater trough 2022. The present value of the lease payments is $250,00. The asset's useful Mfe is 6 years, The interest rate is 7% a. Prepare ALL 2019 entries required by Warren Leasing to be made on this lease. b. How will this lease impact Warren's 2019 earnings? Will eamings increase or decrease and by what amournt? Again, show support for your anewer. For the touibar, press AITIFIAO Bailey Company leased equipment from Warren Leasing on January 1, 2019. Warren manufactured the equipment ata cost ot $137500. The leane agemt an s finance lease The lease agreement specifies five annual payments of $56.987 beginning January 1, 2019, the beginning of the lense, and at each December 31 thereater trough 2022. The present value of the lease payments is $250,00. The asset's useful Mfe is 6 years, The interest rate is 7% a. Prepare ALL 2019 entries required by Warren Leasing to be made on this lease. b. How will this lease impact Warren's 2019 earnings? Will eamings increase or decrease and by what amournt? Again, show support for your anewer. For the touibar, press AITIFIAO
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Solution 1 Date Account Titles Debit Credit January 12019 Lease Receivable 250000 ... View the full answer
Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
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