Question
Southwestern Edison Company leased equipment from Hi-Tech Leasing on January 1, 2018. Hi-Tech manufactured the equipment at a cost of $85,000. Other information: Lease term
Southwestern Edison Company leased equipment from Hi-Tech Leasing on January 1, 2018. Hi-Tech manufactured the equipment at a cost of $85,000.
Other information:
Lease term 4 years Annual payments $30,000 on January 1 of each year Life of the asset 4 years Fair value of the asset $105,939 Implicit interest rate 9% Incremental rate 9% There is no expected residual value.
Required:
Prepare appropriate journal entries for Hi-Tech Leasing for 2018. Assume ending December 31
Southwestern Edison Company leased equipment from Hi-Tech Leasing on January 1, 2018. Hi-Tech manufactured the equipment at a cost of $85,000.
Other information:
Lease term 4 years Annual payments $30,000 on January 1 of each year Life of the asset 4 years Fair value of the asset $105,939 Implicit interest rate 9% Incremental rate 9% There is no expected residual value.
Required:
Prepare appropriate journal entries for Hi-Tech Leasing for 2018. Assume ending December 31
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
HiTech Leasing is the lessor in this lease arrangement As per the information provided the lease arr...
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Intermediate accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
7th edition
978-0077614041, 9780077446475, 77614046, 007744647X, 77647092, 978-0077647094
