Ryan Corporation Entered into the Following Transactions

question 91

Essay

Ryan Corporation entered into the following transactions:
1. Hewitt Car Rental leased a car to Ryan Corporation for one year. Terms of the operating lease call for monthly payments of $750.
2. On January 1, 2014, Ryan Corporation entered into an agreement to lease 20 machines from Meeks Corporation. The terms of the lease agreement require an initial payment of $210,000 and then three annual rental payments of $210,000 beginning on December 31, 2014. The present value of the three rental payments is $522,238. The lease is a finance lease.
Instructions
Prepare the appropriate journal entries to be made by Ryan Corporation in January related to the lease transactions.

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Definitions:

Drug Store Chains

Drug store chains refer to a group of retail pharmacies that operate multiple outlets under the same brand, offering medications, health products, and other consumer goods.

Health Care Clinics

Medical facilities offering outpatient services for the diagnosis and treatment of various health conditions.

Medication And Vaccinations

Medical treatments and preventive injections intended to treat or protect against diseases and health conditions.

Diagnostic Equipment

Diagnostic Equipment refers to tools and devices used in the medical field to detect, analyze, and monitor diseases, conditions, or the physical state of a patient.