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Business, 04.07.2020 21:01 smithsavannah295
Big Bucks leased equipment to Shannon Company on July 1, 2021. The lease payments were calculated to provide the lessor a 10% return. Eight annual lease payments of $43,000 are due each July 1, beginning July 1, 2021. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1).Required:1. Prepare the journal entries to record the lease by Shannon at July 1, 2018, and at December 31, 2018, the end of the reporting period. Consider this to be a finance lease.2. Prepare the journal entries to record the lease by Shannon at July 1, 2018, and at December 31, 2018, the end of the reporting period. Consider this to be an operating lease.
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