Question: Don't copy paste from available answers please understand the format of journal entries they are different and all boxes of titles need to be fullfill

Don't copy paste from available answers please understand the format of journal entries they are different and all boxes of titles need to be fullfill
Don't copy paste from available answers please understand the format of journal
entries they are different and all boxes of titles need to be

Current Attempt in Progress Sunland Corporation, which uses ASPE, manufactures replicators. On May 29, 2020, it leased to Bramble Limited a replicator that cost $267.200 to manufacture and usually sells for $413,000. The lease agreement covers the replicator's 4-year useful life and requires four equal annual rentals of $105,778 each, beginning May 29, 2020. The equipment reverts to Sunland at the end of the lease, at which time it is expected that the replicator will have a residual value of $47,100, which is not guaranteed by Bramble, the lessee. An interest rate of 8% is implicit in the lease agreement Collectibility of the rentals is reasonably assured, and there are no important uncertainties concerning costs. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE. Prepare Sunland's May 29,2020 journal entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account tities and enter for the amounts. Round factor values to 5 decimal places, eg. 1.25124 and final answers to decimal places, eg. 5,275) Date Account Titles and Explanation Debit Credit May 29 Lease Receivable Cost of Goods Sold Uncanned interest Income Date Account Titles and Explanation Debit Credit May 29 Lease Receivable Cost of Goods Sold Uncanned interest Income Inventory 267200 (To record inception of lease.) May 29 Cash 105778 Lease Receivable 105778 (Collection of first lease payment.)

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!