70.2K

Verified Solution

Link Copied!

uses a target rate of return of 8% in all lease contracts. The first payment was received on January 1 of Year 1, and Flint's accounting periods end on December 31 . exercise the purchase option at the end of the lease term. a. Compute the annual payment calculated by the lessor. - Note: Round answer to the nearest dollar. - Note: Do not use a negative sign with your answer. b. Prepare a schedule of the lease receivable for the lessor for the full lease term. - Note: Round each amount in the schedule to the nearest whole dollar. Use the rounded amount for later calculations in the schedule. c. Provide journal entries for Year 1 and Year 2 for the lessor assuming that the equipment is held in the lessor's Inventory accou - Note: Round your answers to the nearest whole dollar. uses a target rate of return of 8% in all lease contracts. The first payment was received on January 1 of Year 1, and Flint's accounting periods end on December 31 . exercise the purchase option at the end of the lease term. a. Compute the annual payment calculated by the lessor. - Note: Round answer to the nearest dollar. - Note: Do not use a negative sign with your answer. b. Prepare a schedule of the lease receivable for the lessor for the full lease term. - Note: Round each amount in the schedule to the nearest whole dollar. Use the rounded amount for later calculations in the schedule. c. Provide journal entries for Year 1 and Year 2 for the lessor assuming that the equipment is held in the lessor's Inventory accou - Note: Round your answers to the nearest whole dollar

Answer & Explanation Solved by verified expert

See Answer