Part 3 is to complete journal entries assuming a sales-type lease . Accounts to use are Minimum Lease Payments Receivable , Inventory , Cash , Unearned Interest Income , Sales-Type profit on Lease , Asset Under Capital Lease , and Obligation Under Capital Lease . There is one compound entry of five accounts ( two debits and three credits ) in the books of Pannier and one entry of three accounts ( one debit and two credits ) in the books of Jodestar . All these accounts and entries are illustrated in the book .
Part 4 is This is to simply indicate whether or not there will be a difference in the consolidated statements assuming a sales-type capital lease instead of intercompany purchase / sale of the equipment . ==================================================
ACG 4201 Week 7 Individual Work
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