Refer to Superbyte Corporation

Record the journal entries that SuperByte will make at the inception of the lease and on July 1.

What will be an ideal response?

Answer:
January 1
Lease Receivable 16,000,000
Sales Revenue 16,000,000

Cost of Goods Sold 12,000,000
Merchandise Inventory 12,000,000

Cash 1,493,617
Lease Receivable 1,493,617

July 1
Cash 1,493,617
Interest Revenue 870,383
Lease Receivable 623,234

Business

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