Gradebook 0ION Dowaloadable eTextbook ssignment Brief Exercise 20-2 Sheridan Lim

Question

Gradebook 0ION Dowaloadable eTextbook ssignment Brief Exercise 20-2 Sheridan Limited, a public company following IFRS 16, decided to upgrade the coffee machines in all of its office locations. Sheridan leased 59 machines from Coffee Tyme Ltd. on July 1, 2017 (to purchase the coffee machines instead would cost Sheridan $413 par machine, and the machines would have lasted an estimated five years). The lease calls for semi-annual payments for the next three years, in the amount of $30 per machine. The payments start on July 1, 2017. At the end of the three-year period, the machines will have to be returned to the lessor. Prepare the entry for the first payment on July 1, 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. It no entry is required select "No Entry" for the account titles and enter O for the aiounts.) Date Account Titles and Explanation July 1 Debit Credit dy Would your entry for the first payment ditfer if Sheridan followed ASPE? The entry " the same under ASPE Question Attempts: 0 ot 3 used SAVE FOR LATER SUIHIY ARESWEK to search

Explanation / Answer

Lease expense $1,770

Cash $1,770

(59*30)

The entry will be the same under ASPE.

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