Two independent situations follow: 1. Ready Car Rental leased a car to Martinez Company for three months. Terms of the lease agreement call for monthly payments of $720, beginning on May 21, 2024. Martinez reports using ASPE. 2. On January 1, 2024, InSynch Ltd. entered into an agreement to lease 60 computers from Carla Vista Electronics. The terms of the lease agreement require three annual payments of $40,694 (including 3.5% interest), beginning on January 1, 2024. The present value of the three payments is $113,280 and the market value of the computers is $115,280. InSynch Ltd. reports using IFRS. Prepare the journal entries that Martinez Company should make on May 21, 2024 and Insych Ltd. should make on January 1, 2024 to record the lease agreement. (List all debit entries before credit entries. Credit account titles are automatically indented when the 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.) No. Account Titles 1. Debit Credit

Two independent situations follow: 1. Ready Car Rental leased a car to Martinez Company for three months. Terms of the lease agreement call for monthly payments of $720, beginning on May 21, 2024. Martinez reports using ASPE. 2. On January 1, 2024, InSynch Ltd. entered into an agreement to lease 60 computers from Carla Vista Electronics. The terms of the lease agreement require three annual payments of $40,694 (including 3.5% interest), beginning on January 1, 2024. The present value of the three payments is $113,280 and the market value of the computers is $115,280. InSynch Ltd. reports using IFRS. Prepare the journal entries that Martinez Company should make on May 21, 2024 and Insych Ltd. should make on January 1, 2024 to record the lease agreement. (List all debit entries before credit entries. Credit account titles are automatically indented when the 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.) No. Account Titles 1. Debit Credit

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 1E: Determining Type of Lease and Subsequent Accounting On January 1, 2019, Caswell Company signs a...

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