Use
the information for Regina Corporation from BE20–14. Assume instead that the
residual value is not guaranteed. Prepare Regina’s May 29, 2011 journal
entries.
Lease Payments Receivable............... 519,650
Cost of Goods Sold ($265,000 – $22,697*) 242,303
Sales
($410,000 – $22,697).......... 387,303
Unearned
Interest Income—Leases..... 109,650
Inventory........................... 265,000
* ($40,000 X .56743) = $22,697
($95,930 X 4.03735) = $387,303
($95,930 X 5) + $40,000 = $519,650
Cash.................................... 95,930
Lease
Payments Receivable........... 95,930
