Do not give image format On January 1, 2023, Bramble Ltd. entered into an agreement to lease a truck from Wildhorse Ltd. Both Bramble and Wildhorse useIFRS. The details of the agreement are as follows:Carrying value of truck for WildhorseFair value of truckEconomic life of truckLease termRental payments (at beginning of each month)Executory costs included in rental payments each month for insuranceIncremental borrowing rate for BrambleBramble expects to pay Wildhorse $3,440 under a residual value guarantee for the truck.Additional information:1.2.3.$22,839$22,8395 years3 years$690$1812%There are no abnormal risks associated with the collection of lease payments from Bramble.There are no additional unreimbursable costs to be incurred by Wildhorse in connection with the leased truck.At the end of the lease term, Wildhorse sold the truck to a third party for $3,085, which was the truck's fair value atDecember 31, 2025. Bramble paid Wildhorse the difference between the residual value guarantee of $3,440 and theproceeds obtained on the resale. 3.4.5.6.(a)At the end of the lease term, Wildhorse sold the truck to a third party for $3,085, which was the truck's fair value atDecember 31, 2025. Bramble paid Wildhorse the difference between the residual value guarantee of $3,440 and theproceeds obtained on the resale.Bramble knows the interest rate that is implicit in the lease.Bramble knows the amount of executory costs included in the minimum lease payments.Bramble uses straight-line depreciation for its trucks with the residual value guarantee of $3,440 for the leased truck.Your answer is partially correct.Prepare the journal entries that Wildhorse would make on January 1, 2023, and the adjusting journal entries at December 31,2023, to record the annual interest income from the lease arrangement, assuming that Wildhorse has a December 31 fiscal yearend. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indentmanually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to O decimal places,e.g. 5,275.)Show Transcribed TextDateJan. 1, 2023Dec. 31, 2023Account Titles and ExplanationCashLease ReceivableEquipment Acquired for LesseeUnearned Interest IncomeUnearned Interest IncomeInterest IncomeDebitCredit

An agreement of contract that is prepared to transfer the right to use the resources for a…

On January 1, 2023, Bramble Ltd. entered into an agreement to lease a truck from Wildhorse Ltd. Both Bramble and Wildhorse use IFRS. The details of the agreement are as follows: Carrying value of truck for Wildhorse Fair value of truck Economic life of truck Lease term Rental payments (at beginning of each month) $22,839 $22,839 5 years 3 years $690

On January 1, 2023, Bramble Ltd. entered into an agreement to lease a truck from Wildhorse Ltd. Both Bramble and Wildhorse use IFRS. The details of the agreement are as follows: Carrying value of truck for Wildhorse Fair value of truck Economic life of truck Lease term Rental payments (at beginning of each month) $22,839 $22,839 5 years 3 years $690

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 9MC

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