Manufactures replicators-starfleets journal entries

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Starfleet Corporation manufactures replicators. On January 1, 2018, it leased to Ferengi Company a replicator that had cost $110,000 to manufacture. The lease agreement covers the 5-year useful life of the replicator and requires 5 equal annual rentals of $45,400 each. The first rental payment is made on January 1, 2018. An interest rate of 12% is implicit in the lease agreement. Collectbility of the rentals is reasonably assured, and there are no important uncertainties concerning costs.

1) Prepare Starfleet's (lessor) January 1, 2018 journal entries.

Reference no: EM131456245

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