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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