The following are characteristics of a lease that started on January 1:
Required:
a.Determine the appropriate classification for this lease for the lessor (who is not the manufacturer)and the lessee.
b.record the journal entries for the lessor for the first year of the lease.
c.Prepare the journal entries for the lessee for the first year.Assume the lessee uses straight-line depreciation for its property,plant,and equipment..

Question

The following are characteristics of a lease that started on January 1:
  Required:
a.Determine the appropriate classification for this lease for the lessor (who is not the manufacturer)and the lessee.
b.record the journal entries for the lessor for the first year of the lease.
c.Prepare the journal entries for the lessee for the first year.Assume the lessee uses straight-line depreciation for its property,plant,and equipment..

Quizplus · Accepted Answer

The Answer of The following are characteristics of a lease that started on January 1:
  Required:
a.Determine the appropriate classification for this lease for the lessor (who is not the manufacturer)and the lessee.
b.record the journal entries for the lessor for the first year of the lease.
c.Prepare the journal entries for the lessee for the first year.Assume the lessee uses straight-line depreciation for its property,plant,and equipment..

The Following Are Characteristics of a Lease That Started on January