On January 1, 2018, Robertson Construction Leased Several Items of Equipment

question 17

Essay

On January 1, 2018, Robertson Construction leased several items of equipment under a two-year operating lease agreement from Jamison Leasing, which routinely finances equipment for other firms at an annual interest rate of 4%. The contract calls for four rent payments of $40,000 each, payable semiannually on June 30 and December 31 each year. The equipment was acquired by Jamison Leasing at a cost of $360,000 and was expected to have a useful life of five years with no residual value. Both firms record amortization and depreciation semi-annually.
-Required:
Prepare the appropriate journal entries for the lessor (Jamison Leasing) from the beginning of the lease through the end of 2018. Round your answers to the nearest whole dollar amounts.

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Definitions:

Diagnose

The process of identifying a disease or condition by its signs, symptoms, and through the use of diagnostic tests.

Severe Depression

A more intense form of depression characterized by profound sadness, hopelessness, loss of interest in activities, and potential for suicidal thoughts or behaviors.

Bipolar Disorder

A mental illness marked by extreme mood swings from highs (mania or hypomania) to lows (depression).

Mood Swings

describe rapid and intense changes in emotion, which can range from euphoric highs to depressive lows, and may affect an individual's behavior and reactions.