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Problem - Lessor Accounting Issues - Ramsey Company leases heavy equipment to Terrell Inc. on March 1, 2019, on the following terms:
1. Twenty-four lease rentals of $2,950 at the beginning of each month are to be paid by Terrell, and the lease is noncancelable.
2. The cost of the heavy equipment to Ramsey was $55,000.
3. Ramsey uses an implicit interest rate of 18% per year and will account for this lease as a sales-type lease.
Required - Prepare journal entries for Ramsey (the lessor) to record the lease contract on March 1, 2019, the receipt of the first two lease rentals, and any interest income for March and April 2019.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
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