On January 1, 2024, Taco King leased retail space from Fogelman Properties. The 10-year finance lease...

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On January 1, 2024, Taco King leased retail space from Fogelman Properties. The 10-year finance lease requires quarterly variable lease payments equal to 3% of Taco King's sales revenue, with a quarterly sales minimum of $400,000 Payments at the beginning of each quarter are based on previous quarter sales. During the previous five-year period, Taco King has generated quarterly sales of over $650,000. Fogelman's Interest rate, known by Taco King, was 4% Note: Use tables, Excel, or a financial calculator. (FV of S1, PV of $1, EVA of $1 PVA of $1. EVAD of $1 and PVAD of $ Required: 1. Prepare the journal entries for Taco King at the beginning of the lease on January 1, 2024. 2. Prepare the journal entries for Taco King on April 1, 2024 First quarter sales were $660.000 Amortization is recorded quarterly On January 1, 2024, Taco King leased retail space from Fogelman Properties. The 10-year finance lease requires quarterly variable lease payments equal to 3% of Taco King's sales revenue, with a quarterly sales minimum of $400,000 Payments at the beginning of each quarter are based on previous quarter sales. During the previous five-year period, Taco King has generated quarterly sales of over $650,000. Fogelman's Interest rate, known by Taco King, was 4% Note: Use tables, Excel, or a financial calculator. (FV of S1, PV of $1, EVA of $1 PVA of $1. EVAD of $1 and PVAD of $ Required: 1. Prepare the journal entries for Taco King at the beginning of the lease on January 1, 2024. 2. Prepare the journal entries for Taco King on April 1, 2024 First quarter sales were $660.000 Amortization is recorded quarterly

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Answer 1 Journal entries for Taco King at the beginning of the ... View the full answer