Use the information for Merrill Corporation from BE20-11. Assume that for Moxey Corporation, the lessor, collectibility is

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Use the information for Merrill Corporation from BE20-11. Assume that for Moxey Corporation, the lessor, collectibility is reasonably predictable, there are no important uncertainties concerning costs, and the equipment's carrying amount is $121,000. Prepare Moxey's September 13, 2017 journal entries.
In BE20-11
Merrill Corporation, which uses ASPE, enters into a six-year lease of equipment on September 13, 2017 that requires six annual payments of $28,000 each, beginning September 13, 2017. In addition, Merrill guarantees the lessor a residual value of $17,000 at lease end. The equipment has a useful life of six years. Using tables, a financial calculator, or Excel functions, calculate the amount of the capital lease and prepare Merrill's September 13, 2017 journal entries, assuming an interest rate of 9%.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Intermediate Accounting

ISBN: 978-1119048541

11th Canadian edition Volume 2

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy

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