Tamarisk Corporation manufactures drones. On December 31, 2016, it leased to Althaus Company a drone...
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Tamarisk Corporation manufactures drones. On December 31, 2016, it leased to Althaus Company a drone that had cost $106,300 to manufacture. The lease agreement covers the 5-year useful life of the drone and requires 5equal annual rentals of $42,800 payable each December 31, beginning December 31, 2016. An interest rate of 11% is implicit in the lease agreement. Collectibility of therentals is probable. Prepare Tamarisks December 31, 2016, journal entries.
Date Account Titles and Explanation Debit Credit December 31, 2016 o reco December 31, 2016 (To record receipt of lease payment)
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