Read the following case study Accounting at MacCloud Winery and answer the Following questions? Should the leased building be accounted for as an asset? Should the agreement to pay lease rentals be recorded as a liability? Justify your answers. Record the journal entries to account for the bank loan. for all three years. Assume the loan was made at the beginning of year one and repaid at the end of year three. Assume all interest payments are made on an annual basis. The $10,000 per year payment is to reduce the loan’s principal.
Read the following case study Accounting at MacCloud Winery and answer the Following questions? Should the leased building be accounted for as an asset? Should the agreement to pay lease rentals be recorded as a liability? Justify your answers. Record the journal entries to account for the bank loan. for all three years. Assume the … Read more