Given the picture information for the Finance Lease deal. What will be the journalentries and then the
Question:
Given the picture information for the Finance Lease deal. What will be the journal entries and then the balance sheet and income statements for:
- The Leasee
- The Leassor
If possible divide the journal entries for both side by:
- The first transaction which is taking the asset from the leasor side into the leasee side for the purpose of leasing.
- The onward months till the end of leasing period.
- The official transfer of the asset ownership from the leasor to leasee when both sides agree for completing the ownership transfer.
OR
- The returning back of the asset from the leasee side to the leasor side, if the leasee decide at the end of the leasing period that he no longer needs the assets.
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain