On January 1, 2014, Fiona sold some land to another company and immediately leased it back again. The sale price was $13,420, and the leaseback requires $2,000 payments at the end of each of the next ten years. An interest rate of 8% was used. The cost of the land on Fiona's books was $10,000. The title to the land will be transferred back to Fiona at the end of the lease.
Required:
Prepare all 2014 journal entries on the books of Fiona.

Question

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The Answer of On January 1, 2014, Fiona sold some land to another company and immediately leased it back again. The sale price was $13,420, and the leaseback requires $2,000 payments at the end of each of the next ten years. An interest rate of 8% was used. The cost of the land on Fiona's books was $10,000. The title to the land will be transferred back to Fiona at the end of the lease.
Required:
Prepare all 2014 journal entries on the books of Fiona.

On January 1, 2014, Fiona Sold Some Land to Another