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Please Oriole Company, a machinery dealer, leased a machine to Dexter Corporation on January 1, 2020....

Question:

Please
Oriole Company, a machinery dealer, leased a machine to Dexter Corporation on January 1, 2020. The lease is for an 8-year per
42/5 iii Your answer is partially correct. Prepare all necessary journal entries for Dexter for 2020. (Credit account titles
Oriole Company, a machinery dealer, leased a machine to Dexter Corporation on January 1, 2020. The lease is for an 8-year period and requires equal annual payments of $33,300 at the beginning of each year. The first payment is received on January 1, 2020. Oriole had purchased the machine during 2019 for $150,000. Collectibility of lease payments by Oriole is probable. Oriole set the annual rental to ensure a 6% rate of return. The machine has an economic life of 10 years with no residual value and reverts to Oriole at the termination of the lease. Assume that Dexter Corporation does not know the rate implicit in the lease used by Oriole, and Dexter's incremental borrowing rate is 8%. In addition, assume that Dexter incurs initial direct costs of $12,000. Click here to view factor tables
42/5 iii Your answer is partially correct. Prepare all necessary journal entries for Dexter for 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to decimal places eg. 5,275. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Right-of-Use Asset 1/1/20 Lease Liability Cash (To record the lease) 1/1/20 Lease Liability Cash (To record the first lease payment) 12/31/20 Interest Expense Lease Liability (To record interest expense) 12/31/20 Amortization Expense Right-of-Use Asset (To record amortization of the right-of-use asset) e Textbook and Media List of Accounts

Answers

Credil c. 54899 Accouol didle and Debit explanation Right case cussel cu 54899 To least liability (ro record the lease] ] Coo

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