Question: Please help with journal entry #4 for Requirement 2. Eye Deal Optometry leased vision-testing equipment from Insight Machines on January 1, 2018. Insight Machines manufactured
Please help with journal entry #4 for Requirement 2.
Eye Deal Optometry leased vision-testing equipment from Insight Machines on January 1, 2018. Insight Machines manufactured the equipment at a cost of $400,000 and lists a cash selling price of $459,714. Appropriate adjusting entries are made quarterly. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Related Information Lease term Quarterly lease payments Economic life of asset Interest rate charged by the lessor 5 years (20 quarterly periods) S30,000 at Jan. 1, 2018, and at Mar. 31, June 30, Sept. 30, and Dec. 31 thereafter 5 years 12% Required 1. Prepare appropriate entries for Eye Deal to record the arrangement at its beginning, January 1, 2018, and on March 31 2018 2. Prepare appropriate entries for Insight Machines to record the arrangement at its beginning, January 1, 2018, and on March 31, 2018 Complete this question by entering your answers in the tabs below Required1Required 2 Prepare appropriate entries for Eye Deal to record the arrangement at its beginning, January 1, 2018, and on March 31, 2018 (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Date General Journal Debit Credit January 01 2018 Right-of-use asset 459,714 Lease payable 459,714 January 01 2018 Lease payable 30,000 Cash 30,000 3 March 31, 2018 Lease payable 17,109 Interest expense 12,891 Cash 30,000 2 4 March 31, 2018 Amortization expense Right-of-use asset
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
