Charles River Hospital leased medical equipment from Plymouth Industries on January 1, 2018. Plymouth Industries manufactured the equipment at a cost of $600,000. The equipment has a fair value of $750,654. Appropriate adjusting entries are made quarterly.

Required:
Round your answers to the nearest whole dollar amounts.
1. Prepare appropriate journal entries for Charles River Hospital to record the arrangement at its commencement, January 1, 2018, and on March 31, 2018.
2. Prepare appropriate journal entries for Plymouth Industries to record the arrangement at its commencement, January 1, 2018, and on March 31, 2018.

Question

Charles River Hospital leased medical equipment from Plymouth Industries on January 1, 2018. Plymouth Industries manufactured the equipment at a cost of $600,000. The equipment has a fair value of $750,654. Appropriate adjusting entries are made quarterly.

Required:
Round your answers to the nearest whole dollar amounts.
1. Prepare appropriate journal entries for Charles River Hospital to record the arrangement at its commencement, January 1, 2018, and on March 31, 2018.
2. Prepare appropriate journal entries for Plymouth Industries to record the arrangement at its commencement, January 1, 2018, and on March 31, 2018.

Quizplus · Accepted Answer

The Answer of Charles River Hospital leased medical equipment from Plymouth Industries on January 1, 2018. Plymouth Industries manufactured the equipment at a cost of $600,000. The equipment has a fair value of $750,654. Appropriate adjusting entries are made quarterly.

Required:
Round your answers to the nearest whole dollar amounts.
1. Prepare appropriate journal entries for Charles River Hospital to record the arrangement at its commencement, January 1, 2018, and on March 31, 2018.
2. Prepare appropriate journal entries for Plymouth Industries to record the arrangement at its commencement, January 1, 2018, and on March 31, 2018.

Charles River Hospital Leased Medical Equipment from Plymouth Industries on January