Prepare the appropriate journal entries for the lessor

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Question - On January 1, 2021, Robertson Construction leased several items of equipment under a two-year operating lease agreement from Jamison Leasing, which routinely finances equipment for other firms at an annual interest rate of 5%. The contract calls for four rent payments of $48,000 each, payable semiannually on June 30 and December 31 each year. The equipment was acquired by Jamison Leasing at a cost of $368,000 and was expected to have a useful life of five years with no residual value. Both firms record amortization and depreciation semi-annually.

Required - Prepare the appropriate journal entries for the lessor (Jamison Leasing) from the beginning of the lease through the end of 2021.

Reference no: EM133164555

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