Crane Corporation manufactures drones. On December 31, 2024, it leased to Blossom Company a drone that had cost $100,000 to manufacture. The lease agreement covers the 5-year useful life of the drone and requires 5 equal annual rentals of $40,200 payable each December 31, beginning December 31, 2024. An interest rate of 11% is implicit in the lease agreement. Collectibility of the entals is probable. Prepare Crane's December 31, 2024, journal entries. (List all debit entries before credit entries. 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 mounts. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to O decimal places -8.5,275.) Click here to view factor tables.
Crane Corporation manufactures drones. On December 31, 2024, it leased to Blossom Company a drone that had cost $100,000 to manufacture. The lease agreement covers the 5-year useful life of the drone and requires 5 equal annual rentals of $40,200 payable each December 31, beginning December 31, 2024. An interest rate of 11% is implicit in the lease agreement. Collectibility of the entals is probable. Prepare Crane's December 31, 2024, journal entries. (List all debit entries before credit entries. 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 mounts. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to O decimal places -8.5,275.) Click here to view factor tables.
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 1P: Determining Type of Lease and Subsequent Accounting On January 1, 2019, Ballieu Company leases...
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