Crane Co. as lessee records a finance lease of machinery on January 1, 2021. The seven annual lease payments of $819,000 are made at the end of each year. The present value of the lease payments at 9% is $4,122,000. Crane uses the effective-interest method of amortization and sum-of-the-years'-digits depreciation (no residual value). Crane Co.Lease Amortization ScheduleAnnual LeaseInterest onReduction inLeaseReceipt/PaymentReceivable/LiabilityReceivable/LiabilityReceivable/Liability4122000819000$370980$44802036739808190003306584883423185683%24%24 Prepare all of Crane's journal entries for 2021. (Credit account titles are automatically indented when amount is entered. Do notindent manually.)Account Titles and ExplanationDebitCredit(To record the lease)(To record the first lease payment)(To record depreciation)

The present value of lease payment is $4,122,000. Therefore, Right of use Asset would be $4,122,000.…

Crane Co. as lessee records a finance lease of machinery on January 1, 2021. The seven annual lease payments of $819,000 are made at the end of each year. The present value of the lease payments at 9% is $4,122,000. Crane uses the effective-interest method of amortization and sum-of-the-years'-digits depreciation (no residual value)

Crane Co. as lessee records a finance lease of machinery on January 1, 2021. The seven annual lease payments of $819,000 are made at the end of each year. The present value of the lease payments at 9% is $4,122,000. Crane uses the effective-interest method of amortization and sum-of-the-years'-digits depreciation (no residual value)

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 5RE: Use the information in RE20-3. Prepare the journal entries that Garvey Company would make in the...

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