3. The seller of the airplane in question #1 was RustyBucket Air Mfg, Inc. RustyBucket manufactured the plane at a cost of $4.5 million. The plane automatically transfers to ConAir at the end of the lease. Show the following journal entries:
(a) The initial sale of the plane.
(b) The receipt of the final payment of the lease in year 10
(a) The initial sale of the plane. Debit Net Investment in Lease $(Sales price) Credit Sales $(Sales... View the full answer