Respuesta :
Answer and Explanation:
The journal entries are shown below:
1. For Eye deal:
On January 1,2018
Right of use asset $275,195
To Lease payable $275,195
(Being the lease payable is recorded)
On January 1,2018
Lease payable $24,000
To Cash $24,000
(Being the lease payment is paid)
On March 31,2018
Interest expense $2,511.95 {($275,195 - $24,000) × 4% × 3 months ÷ 12 months }
Lease payable $21 ,488.05
To Cash $24,000
(Being the lease payment and interest is paid)
On March 31,2018
Amortization expense $13,759.75 ($275,195 ÷ 20 )
To Right of use asset $13,759.75
(being the amortization expense is recorded)
2 For insight machines:
On January 1,2018
Lease receivable $275,195
Cost of goods sold $220,000
To Sales revenue $275,195
To Equipment $220,000
(being the sales and cost is recorded)
On January 1,2018
Cash $24,000
To Lease receivable $24,000
(being cash received is recorded)
On March 31,2018
Cash $24,000
To Interest revenue $2,511.95 {($275,195 - $24,000) × 4% × 3 months ÷ 12}
To Lease receivable $21 ,488.05
(being cash received is recorded)
