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Unformatted text preview: 2010 6. Collectability of the lease payments is reasonably predictable. There are no important uncertainties surrounding the amount of costs yet to be incurred by the lessor. Instructions: (A)Assuming the lessor desires a 10% rate of return on its investment, calculate the amount of the annual rental payment required. Round to the nearest dollar. (B) Prepare an amortization schedule that would be suitable for the lessor for the lease term (C) Prepare all of the journal entries for the lessor for 2010 and 2011 to record the lease agreement, the receipt of lease payments, and the recognition of income. Assume the lessor’s annual accounting period ends on December 31....
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This note was uploaded on 02/21/2012 for the course ACT 492 taught by Professor Ngo during the Fall '11 term at Colorado.
- Fall '11