Reference no: EM132507861

Mickey Leasing leased movietheater equipment to DuckDuck Company on January 1, 2018. The lease payments were calculated to provide the lessor, Mickey, a 7% return. Ten annual lease payments of $58,500 are due on January 1, 2018 and then each December 31, beginning December 31, 2018 after that. Mickey initially bough the equipment for $390,000 and expected the equipment to have a ten-year useful life. This qualifies as a finance / sales-type lease.

1. DuckDuck recorded interest expense of for 2018.

2. DuckDuck recorded amortization expense of for 2018.

3. DuckDuck's lease payable had a balance of as of 12/31/2018. (Enter a debit balance as a positive number and a credit balance as a negative number.

4. Mickey would record a lease receivable on January 1, 2018 in the amount of .

5. Mickey would recognize revenue on January 1, 2018 in the amount of .

6. Mickey would credit interest revenue of on December 31, 2018.

Lastly, answer the following questions related to the balance sheet. Enter CREDIT balances as a negative number (i.e., a credit balance of 1,000 in deferred revenue would be entered as -1,000). Enter DEBIT balances as a positive number.

Question 1: What is the balance in ROU asset for DuckDuck at Dec. 31, 2019?

Question 2: What is the balance in the lease payable for DuckDuck at Dec. 31, 2019?

Question 3: What is the balance in theater equipment for Mickey at Dec. 31, 2019?

Question 4: What is the balance in the lease receivable for Mickey at Dec. 31, 2019?