Use
the information for Merrill Corporation from BE20–6. Assume that for Moxey
Corporation, the lessor, collectibility is reasonably predictable, there are no
important uncertainties concerning costs, and the machinery’s carrying amount
is $121,000. Prepare Moxey’s September 13, 2011 journal entries.
Lease Payments Receivable............... 185,000
Sales............................... 147,047
Unearned
Interest Income—Leases..... 37,953
[($28,000 X 4.88965) + ($17,000 X .59627) = $147,047]
($28,000 X 6) + $17,000 = $185,000
Payments are assumed to be at the beginning of each
year
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Excel formula =PV(rate,nper,pmt,fv,type)
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Using a financial calculator:
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PV
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$
?
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Yields $(147,047)
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I
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9%
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N
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6
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PMT
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$ 28,000
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FV
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$ 17,000
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Type
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1
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Cost of Goods Sold...................... 121,000
Inventory........................... 121,000
Cash.................................... 28,000
Lease
Payments Receivable........... 28,000
