A lease qualifies as a finance (sales-type) lease. Indicate an account to be used by the lessee, and anaccount to be used by the lessorSelect one:Account to be used by the lesseeRight of Use AssetAccount to be used by the lessorLease Receivablea.Ob.Account to be used by the lesseeUnearned RevenueAccount to be used by the lessorSales RevenueAccount to be used by the lesseeLease ExpenseAccount to be used by the lessorInterest Revenued. Account to be used by the lesseOLease LiabilityAccount to be used by the lessorAmortization ExpenseAccount to be used by the lesseeAmortization ExpenseAccount to be used by the lessorInterest Expensee.

Accounting Entry Made by lessee Dr. Right of Use Assets Cr. Lease Liability Accounting…

A lease qualifies as a finance (sales-type) lease. Indicate an account to be used by the lessee, and an account to be used by the lessor Select one: Account to be used by the lessee Right of Use Asset Account to be used by the lessor Lease Receivable a. O b. Account to be used by the lessee Account to be used by the lessor Sales Revenue Unearned Revenue Account to be used by the lessee Lease Expense Account to be used by the lessor Interest Revenue Oc. O d. Account to be used by the lessee Lease Liability Account to be used by the lessor Amortization Expense Account to be used by the lessee Amortization Expense Account to be used by the lessor Interest Expense e.

A lease qualifies as a finance (sales-type) lease. Indicate an account to be used by the lessee, and an account to be used by the lessor Select one: Account to be used by the lessee Right of Use Asset Account to be used by the lessor Lease Receivable a. O b. Account to be used by the lessee Account to be used by the lessor Sales Revenue Unearned Revenue Account to be used by the lessee Lease Expense Account to be used by the lessor Interest Revenue Oc. O d. Account to be used by the lessee Lease Liability Account to be used by the lessor Amortization Expense Account to be used by the lessee Amortization Expense Account to be used by the lessor Interest Expense e.

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 8MC: At its inception, the lease term of Lease G is 65% of the estimated remaining economic life of the...

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Similar questions

What is the basic difference between the accounting procedures used by a lessor for a sales-type lease and those used for a direct-financing lease?
At its inception, the lease term of Lease G is 65% of the estimated remaining economic life of the leased property. This lease contains a purchase option that is reasonably expected to be exercised. The lessee should record Lease G as: a. neither an asset nor a liability b. an asset but not a liability c. an expense d. an asset and a liability
Lease liability and right of use asset are accounts used by the lessee in a finance lease. Are the components used in computing the right of use asset all similar to the components that make up the lease liability? Differentiate lease liability and right of use asset.
For a lessor, the leased asset appears on the balance sheet and continues to be depreciatedwhen the lease is classifi ed as:A . a sales-type lease.B . an operating lease.C . a fi nancing lease.
Lease liability and right of use asset are accounts used by the lessee in a finance lease. Are the components used in computing the right of use asset all similar to the components that make up the lease liability?
Lease liability and right of use asset are accounts used by the lessee in a finance lease. Are the components used in computing the right of use asset all similar to the components that make up the lease liability? Cite their differences and similarities.
The difference of gross investment in the lease and net investment in the lease of the lessor is? A. Total amount of interest that the lessee shall recognized as interest expense over the lease term. B. Interest income at inception of the lease. C. Total amount of interest that the lessor shall recognized as interest income over the lease term. D. Initial direct cost.
Which of the following statements characterizes a sales-type lease? The lessor recognizes only interest revenue over the life of the asset.. The lessor recognizes a dealer profit at lease inception and interest revenue over the lease term. The lessor recognizes a dealer profit at lease inception and interest revenue over the useful life. The lessor recognizes only interest revenue over the lease term.
Which of the following statements characterizes a sales-type lease? A)The lessor recognizes only interest revenue over the life of the asset.. B)The lessor recognizes only interest revenue over the lease term. C)The lessor recognizes a dealer profit at lease inception and interest revenue over the lease term. D)The lessor recognizes a dealer profit at lease inception and interest revenue over the useful life.
For a(n) ________ lease, a lessor recognizes revenue on the sale and records the asset, ________ lease. It also removes the leased asset from its accounts and records the ________. Group of answer choices sales-type; net investment in lease–sales-type; cost of goods sold finance; gross investment in lease–sales-type; cost of goods sold operating; net investment in lease–sales-type; cost of goods sold sales-type; finance; revenue
A lessor will record interest income if a lease is classifi ed as:A . a capital lease.B . an operating lease.C . either a capital or an operating lease.
This type of lease involves recognition of a manufacturer’s or dealer’s profitor loss on the transfer of the asset to the lessee. A. Operating leaseB. Sale and leasebackC. Sales type leaseD. Direct financing lease.