b. Net investment in the lease on January 1, 20x1 d. - Sales, Cost of sales, and Gross profit recognized o Gross investment in the lease on January 1, 20x1 Sales type lease 2. On January 1, 20x1, Soap Financing Co. leased a machine to Sanitizer, Inc. Information on the lease is shown below. Cost of machine P600,00 Useful life of machine 5 yeas 4 years P200,00 Lease term Annual rent payable ạt the end of each year Market rate of interest 10% Residual value at the end of the lease term PA0,00 term. The lease is classified as sales type lease. value is (1) Guaranteed and (2) Unguaranteed: a. Gross investment in the lease on January 1, 20x1 b. Net investment in the lease on January 1, 20x1 С. Soap Co. over the lease term on the lease
b. Net investment in the lease on January 1, 20x1 d. - Sales, Cost of sales, and Gross profit recognized o Gross investment in the lease on January 1, 20x1 Sales type lease 2. On January 1, 20x1, Soap Financing Co. leased a machine to Sanitizer, Inc. Information on the lease is shown below. Cost of machine P600,00 Useful life of machine 5 yeas 4 years P200,00 Lease term Annual rent payable ạt the end of each year Market rate of interest 10% Residual value at the end of the lease term PA0,00 term. The lease is classified as sales type lease. value is (1) Guaranteed and (2) Unguaranteed: a. Gross investment in the lease on January 1, 20x1 b. Net investment in the lease on January 1, 20x1 С. Soap Co. over the lease term on the lease
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter20: Accounting For Leases
Section: Chapter Questions
Problem 9RE: Use the information in RE20-3. Prepare the journal entries that Richie Company (the lessor) would...
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