Journal entries Assignment | College Homework Help

12:50 PM / Remaining 67 min CALCULATOR NEXT Question 17 Sage Hill Leasing Company is a lease agreement on January 1, 2020 to lea r n t te rice Company. The term of the non-cancelable as is 2 years, and payments are required at the end of each year. The following information relates to this agreement: 1. Oricle has the option to purchase the equipment for $22,500 upon termination of the It is not reasonably certain that Oriole will exercise this option 2. The equipment has a cost of $250,000 and fair value of $273,000 to Sage Hill Leasing. The useful economic life is 2 years, with a residual value of $22.500. 3. Sage Hall Leasing desires to earn a return of 5% on its investment. 4. Collectibility of the payments by Sage Hal Leasing is probable Click here to view factor tables Prepare the journal entries on the books of Sage Leasing to reflect the payments received under the lease and to recognize income for the years 2020 and 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. For calculation purposes, we decimal places as displayed in the factor table provided and round final answers to decimal places e.g. 5,275.) Date Account Tities and Explanation Debit Credit Account Titles and Explanati Debit Click if you would like to Show Work for this question: Open Show Work