A lease agreement between Lennox Leasing Company and Gill Company is described in IFRS21-10. Refer to the data in IFRS21-10 and do the following for t
A lease agreement between Lennox Leasing Company and Gill Company is described in IFRS21-10. Refer to the data in IFRS21-10 and do the following for the lessor. (Round all numbers to the nearest cent.)
\r\nInstructions
\r\n(a) Compute the amount of the lease receivable at the inception of the lease.
\r\n(b) Prepare a lease amortization schedule for Lennox Leasing Company for the 5-year lease term.
\r\n(c) Prepare the journal entries to reflect the signing of the lease agreement and to record the receipts
\r\nand income related to this lease for the years 2014, 2015, and 2016. The lessor’s accounting period
\r\nends on December 31. Reversing entries are not used by Lennox.
\r\n