Current Attempt in Progress

Tvahbee Computy leases a building to Cullamber, Inc. on January $1\mathrm{.}2025.$ The following facts pertain to the lexse ayreenent.

The lease term is $5$ yeark, with equal annual rental parments of $54\mathrm{.}051$ at the beginning of each yeac.

Ownership does not transfer at the end of the leave term, there is no bargsin purchase option and the ment is nof of a specialized nature.

The building has a fair value of $$19,200,$ a book value to lvarhoe of $$12,200,$ and a wefil life of $6$ reark.

At the end of the lease term. Ivarhoe and Cullumber expect there to be an unpuar moteed resibual vid a ed Si $050$

Ivanhoe wants to carna rehirn of $9\%$ on the leme, and collect bility of the papments is probatie. This rite is inown by Cullumber.

Click here to view factor tables. use $5$ decimal ploces as disployed in the fuctor table provided and round find answers to Odecinal places es $5275.$ Omblt account sties are automatically indented when the amount is entered Do not indent manuallicd

Ivanhertlesumal Entries

Date

Account Tities and Explanation

Debit

Credit

Question $1$ of $3$

$\mathrm{.}17$

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Current Attempt in Progress

Ivanhoe Company leases a building to Cullumber, Inc. on January $1,2025.$ The following facts pertain to the lease agreement.

The lease term is $5$ years, with equal annual rental payments of $$4,061$ at the beginning of each year.

Ownership does not transfer at the end of the lease term, there is no bargain purchase option, and the asset is not of a specialized nature.

The building has a fair value of $$19,200,$ a book value to Ivanhoe of $$12,200,$ and a useful life of $6$ years.

At the end of the lease term, Ivanhoe and Cullumber expect there to be an unguaranteed residual value of $$3,050.$

Ivanhoe wants to earn a return of $9\%$ on the lease, and collectibility of the payments is probable. This rate is known by Cullumber.

Click here to view factor tables.

$($b$)$ Using the original facts of the lease, show the journal entries to be made by both Ivanhoe and Cullumber in $2025.($List all debit entries before credit entries. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. For calculation purposes, use $5$ decimal places as displayed in the factor table provided and round final answers to $0$ decimal places, es$.5,275.$ Credit account titles are automatically indented when the amount is entered. Do not indent manually.$)$

Ivanhoe's Journal Entries

Date

Account Titles and Explanation

Debit

Credit

k $15-$Chapter $20$

Question $1$ of $3$

$\mathrm{.}17$

Ivanhoe's Joumal Entries

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