to Flounder Corporation on January 1, 2020. The following
information relates to the lease agreement.
Prepare the journal entries Flounder would make in
2020 and 2021 related to the lease
arrangement. (Credit account titles are
automatically indented when 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. Round answers to 0
decimal places e.g. 58,972. Record journal entries in the order
presented in the problem.)
- Monty Leasing Company Agrees To Lease Equipment To Flounder Corporation On January 1 2020 The Following Information Re 1 (356.53 KiB) Viewed 14 times
12/31/20 1/1/21 12/31/21 Amortization Expense Right-of-Use Asset (To record amortization.) Interest Expense Lease Liability (To record interest.) Lease Liability Cash Amortization Expense Right-of-Use Asset (To record amortization.) 95881 59129 70745 95881 958 591 707 958
1/1/21 12/31/21 (To record interest.) Lease Liability Cash Amortization Expense Right-of-Use Asset (To record amortization.) Interest Expense Lease Liability (To record interest.) ¶ 70745 95881 52055 707 |||| 958 520
— Your answer is partially correct. Prepare the journal entries Monty would make in 2020 and 2021 related to the lease arrangement. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Round answers to O decimal places e.g. 58,972. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Lease Receivable 681000 Cost of Goods Sold 475000 Sales Revenue Inventory (To record the lease.) 1/1/20 |||| 11 681 475
1/1/20 12/31/20 1/1/21 12/31/21 Cash Lease Receivable (To record lease payment.) Lease Receivable Interest Revenue Cash Lease Receivable Lease Receivable Interest Revenue n 129874 49601 129874 42377 1298 49€ 1298 423
* Your answer is incorrect. Suppose Flounder expects the residual value at the end of the lease term to be $40,000 but still guarantees a residual of $50,000. Compute the value of the lease liability at lease commencement. Lease liability $ 700640