The following facts pertain to a non-cancelable lease agreement between Nano Leasing Company and Rock Company,...
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The following facts pertain to a non-cancelable lease agreement between Nano Leasing Company and Rock Company, a lessee.< Inception date:< E The payments are to be made in advance on December 31 of each year except for the first one Bargain-purchase option price at the end of lease term Lease term Economic life of leased equipment Lessee's incremental borrowing rate Lessor's implicit rate Residual value at the end of lease term January 1, 20214 U $7,500 $20,000 4 years 6 years 6% Unknown $04 Required: 1. Prepare the journal entries to record the lease at the beginning of the lease term for the lessee.< 2. Prepare all entries required on the books of Rock Company to record the lease on December 31, 2021, assuming Rock Company uses straight-line depreciation for all long-term assets.< The following facts pertain to a non-cancelable lease agreement between Nano Leasing Company and Rock Company, a lessee.< Inception date:< E The payments are to be made in advance on December 31 of each year except for the first one Bargain-purchase option price at the end of lease term Lease term Economic life of leased equipment Lessee's incremental borrowing rate Lessor's implicit rate Residual value at the end of lease term January 1, 20214 U $7,500 $20,000 4 years 6 years 6% Unknown $04 Required: 1. Prepare the journal entries to record the lease at the beginning of the lease term for the lessee.< 2. Prepare all entries required on the books of Rock Company to record the lease on December 31, 2021, assuming Rock Company uses straight-line depreciation for all long-term assets.<
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Financial and Managerial Accounting
ISBN: 978-0132497978
3rd Edition
Authors: Horngren, Harrison, Oliver
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