RBC leased high-tech electronic equipment from Scotia on January 1, 2018. The present value of the...

RBC leased high-tech electronic equipment from Scotia on January 1, 2018. The present value of the lease payments and the fair value of the equipment are both $56,040.

Related Information:

Lease term 2 years (8 quarterly periods)

Quarterly lease payments $7,500 at Jan 1, 2018 and at Mar 31,

June 30, Sept 30 and Dec 31 thereafter

Economic life of asset 2 years (straight-line, zero residual value, quarterly)

The interest rate needs to be calculated with the information provided

Required:

Prepare appropriate journal entries for RBC (assuming it is a finance lease) on January 1, 2018 and March 31, 2018.
Prepare appropriate journal entries for RBC (assuming it is an operating lease and the useful life of the asset is five years) on January 1, 2018 and March 31, 2018.
Prepare appropriate journal entries for Scotia (assuming it is a finance lease) on January 1, 2018 and March 31, 2018.
Prepare appropriate journal entries for Scotia (assuming it is an operating lease and the useful life of the asset is five years) on January 1, 2018 and March 31, 2018.

Solutions

Expert Solution

ekkarill92 answered 11 months ago

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