Sales-type and operating lease journal entries.

I need help with these journal entries. Please answer whether it is a debit or credit, why it is this account, and what amount. This will help me better understand journal entries and the accounts.

A. How to move the lease deposit to a prepaid lease account or another account.

B. Monthly lease payment journal entries.

C. How to record a journal entry for the purchase of equipment at the end of an operating lease.

D. How to record a journal entry for the purchase of equipment at the end of a sales-type lease.

And the amounts please.

Transcribed Image Text:

GL - Journal entries to record purchase of container at end of lease Some of GL customers purchased the units at the end of the lease. The originial leases were recorded as operating leases (should have been sales type lease) The new leases (and renewal leases) will be sales type leases We need the Journal entries to record the sale of the equipment for both of the above: Clients purchased the containers at FV determined at lease commencement: $2450.69 Clients have a deposit on account that will be applied to the sale ($2.000 per container) Journal entry to record purchase at end of lease (recorded as operating lease) Debit Credit Checking ? Refundable Security Deposit 2000 ? account ? ? account ? ? Sales tax payable 172.87 For the above - GL did record depreciation. Remember to compute the book value and post to correct accounts Include how you computed the values for each amount Journal entry to record purchase at end of sales type lease Debit Credit Checking ? Refundable Security Deposit 2000 ? account ? ? ? account ? ? Sales tax payable 172.87 For the above - GL did record depreciation. Remember to compute the book value and post to correct accounts Include how you computed the values for each amount GL - Journal entries to record purchase of container at end of lease Some of GL customers purchased the units at the end of the lease. The originial leases were recorded as operating leases (should have been sales type lease) The new leases (and renewal leases) will be sales type leases We need the Journal entries to record the sale of the equipment for both of the above: Clients purchased the containers at FV determined at lease commencement: $2450.69 Clients have a deposit on account that will be applied to the sale ($2.000 per container) Journal entry to record purchase at end of lease (recorded as operating lease) Debit Credit Checking ? Refundable Security Deposit 2000 ? account ? ? account ? ? Sales tax payable 172.87 For the above - GL did record depreciation. Remember to compute the book value and post to correct accounts Include how you computed the values for each amount Journal entry to record purchase at end of sales type lease Debit Credit Checking ? Refundable Security Deposit 2000 ? account ? ? ? account ? ? Sales tax payable 172.87 For the above - GL did record depreciation. Remember to compute the book value and post to correct accounts Include how you computed the values for each amount