1. The lessee makes a lease payment of $73,600 to the lessor for...
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Accounting
1.
The lessee makes a lease payment of $73,600 to the lessor for equipment in an operating lease transaction.
2.
Sandhill Company leases equipment from Noble Construction, Inc. The present value of the lease payments is $644,000. The lease qualifies as a capital lease.
Prepare the journal entries that the lessee should make to record the above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
No.
Account Titles and Explanation
Debit
Credit
1.
enter an account title to record rent payment
enter a debit amount
enter a credit amount
enter an account title to record rent payment
enter a debit amount
enter a credit amount
(To record rent payment.)
2.
enter an account title to record lease asset and liability
enter a debit amount
enter a credit amount
enter an account title to record lease asset and liability
enter a debit amount
enter a credit amount
(To record lease asset and liability.)
Answer & Explanation
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