Essay
Recording a manufacturer/dealer lease
On January 1, Lexy Corp. leases a truck they have manufactured to Roxy Corp. Lexy has calculated the lease payments to Roxy to be $ 40,000 per year for 4 years and the sales price of the truck is $ 130,000. It cost Lexy $ 100,000 to manufacture the truck. Record the journal entries to set up the lease on January 1 on Lexy's books.
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