The Bobo Company leased equipment from Bolinger Industries on January 1, 2018. Bolinger purchased the equipment at a cost of $270,000.
Other information: Required:
Round your answers to the nearest whole dollar amounts.
1. Calculate the amount of selling profit that Bolinger would recognize in this sales-type lease. Round to nearest dollar. Show calculations.
2. Prepare the appropriate journal entries for Bolinger on January 1, 2018. Round to nearest dollar. Show calculations.
3. Prepare the appropriate journal entry for Bolinger on December 31, 2018. Round to nearest dollar.

Question

The Bobo Company leased equipment from Bolinger Industries on January 1, 2018. Bolinger purchased the equipment at a cost of $270,000.
Other information:  Required:
Round your answers to the nearest whole dollar amounts.
1. Calculate the amount of selling profit that Bolinger would recognize in this sales-type lease. Round to nearest dollar. Show calculations.
2. Prepare the appropriate journal entries for Bolinger on January 1, 2018. Round to nearest dollar. Show calculations.
3. Prepare the appropriate journal entry for Bolinger on December 31, 2018. Round to nearest dollar.

Quizplus · Accepted Answer

The Answer of The Bobo Company leased equipment from Bolinger Industries on January 1, 2018. Bolinger purchased the equipment at a cost of $270,000.
Other information:  Required:
Round your answers to the nearest whole dollar amounts.
1. Calculate the amount of selling profit that Bolinger would recognize in this sales-type lease. Round to nearest dollar. Show calculations.
2. Prepare the appropriate journal entries for Bolinger on January 1, 2018. Round to nearest dollar. Show calculations.
3. Prepare the appropriate journal entry for Bolinger on December 31, 2018. Round to nearest dollar.

The Bobo Company Leased Equipment from Bolinger Industries on January