Elf Leasing purchased a machine for $500,000 and leased it to IGA, Inc. on January 1, 2018.

Required: Prepare appropriate entries for both IGA and Elf Leasing from the beginning of the lease through the second rental payment on April 1, 2018. Amortization is recorded at the end of each fiscal year (December 31). Round your answers to the nearest whole dollar amounts.

Question

Elf Leasing purchased a machine for $500,000 and leased it to IGA, Inc. on January 1, 2018.

Required: Prepare appropriate entries for both IGA and Elf Leasing from the beginning of the lease through the second rental payment on April 1, 2018. Amortization is recorded at the end of each fiscal year (December 31). Round your answers to the nearest whole dollar amounts.

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The Answer of Elf Leasing purchased a machine for $500,000 and leased it to IGA, Inc. on January 1, 2018.

Required: Prepare appropriate entries for both IGA and Elf Leasing from the beginning of the lease through the second rental payment on April 1, 2018. Amortization is recorded at the end of each fiscal year (December 31). Round your answers to the nearest whole dollar amounts.

Elf Leasing Purchased a Machine for $500,000 and Leased It