Neely BBQ leased equipment from Smoke Industries on January 1, 2018. Smoke Industries had manufactured the equipment at a cost of $810,000.
Other information: Required:
Round your answers to the nearest whole dollar amounts.
1. Prepare the appropriate entries for Neely BBQ (Lessee) on January 1, 2018, and December 31, 2018.
2. Prepare the appropriate entries for Smoke Industries (Lessor) on January 1, 2018, and December 31, 2018. Assume that control is transferred to the lessee.
3. Prepare the appropriate entries for Smoke Industries (Lessor) on January 1, 2018, and December 31, 2018. Assume that control is not transferred to the lessee.

Question

Neely BBQ leased equipment from Smoke Industries on January 1, 2018. Smoke Industries had manufactured the equipment at a cost of $810,000.
Other information:  Required:
Round your answers to the nearest whole dollar amounts.
1. Prepare the appropriate entries for Neely BBQ (Lessee) on January 1, 2018, and December 31, 2018.
2. Prepare the appropriate entries for Smoke Industries (Lessor) on January 1, 2018, and December 31, 2018. Assume that control is transferred to the lessee.
3. Prepare the appropriate entries for Smoke Industries (Lessor) on January 1, 2018, and December 31, 2018. Assume that control is not transferred to the lessee.

Quizplus · Accepted Answer

The Answer of Neely BBQ leased equipment from Smoke Industries on January 1, 2018. Smoke Industries had manufactured the equipment at a cost of $810,000.
Other information:  Required:
Round your answers to the nearest whole dollar amounts.
1. Prepare the appropriate entries for Neely BBQ (Lessee) on January 1, 2018, and December 31, 2018.
2. Prepare the appropriate entries for Smoke Industries (Lessor) on January 1, 2018, and December 31, 2018. Assume that control is transferred to the lessee.
3. Prepare the appropriate entries for Smoke Industries (Lessor) on January 1, 2018, and December 31, 2018. Assume that control is not transferred to the lessee.

Neely BBQ Leased Equipment from Smoke Industries on January 1