to house the customers' boats. Lucky Fisherman Fleet contracted with Warren to provide space for four of its fishing boats. act specifies that Lucky Fisherman's boats will be kept in identified slips in the marina. The agreement includes the requiren Varren provide 45-foot slips per boat for a three-year period, space that Lucky Fisherman can modify with fenders, dockline ment needed to conduct its fishing business. Warren cannot switch locations of the boats or modify the slips without Lucky rman's consent. Lucky Fisherman Fleet paid $21,000 on March 1, 2021, for the first year's accommodations. The market rate st is 7%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables =led.) red: re the appropriate entry(s) for Lucky Fisherman Fleet at March 1, the commencement of the agreement. (If no entry is requ transaction/event, select "No journal entry required" in the first account field. Round your final answers to the nearest - amount.) ew transaction list KAY X
to house the customers' boats. Lucky Fisherman Fleet contracted with Warren to provide space for four of its fishing boats. act specifies that Lucky Fisherman's boats will be kept in identified slips in the marina. The agreement includes the requiren Varren provide 45-foot slips per boat for a three-year period, space that Lucky Fisherman can modify with fenders, dockline ment needed to conduct its fishing business. Warren cannot switch locations of the boats or modify the slips without Lucky rman's consent. Lucky Fisherman Fleet paid $21,000 on March 1, 2021, for the first year's accommodations. The market rate st is 7%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables =led.) red: re the appropriate entry(s) for Lucky Fisherman Fleet at March 1, the commencement of the agreement. (If no entry is requ transaction/event, select "No journal entry required" in the first account field. Round your final answers to the nearest - amount.) ew transaction list KAY X
Chapter16: Accounting Periods And Methods
Section: Chapter Questions
Problem 17DQ
Related questions
Question
Transcribed Image Text:Warren Marina owns a large marina that contains numerous boat slips of various sizes. Warren contracts with boat owners to provide
slips to house the customers' boats. Lucky Fisherman Fleet contracted with Warren to provide space for four of its fishing boats. The
contract specifies that Lucky Fisherman's boats will be kept in identified slips in the marina. The agreement includes the requirement
that Warren provide 45-foot slips per boat for a three-year period, space that Lucky Fisherman can modify with fenders, docklines, and
equipment needed to conduct its fishing business. Warren cannot switch locations of the boats or modify the slips without Lucky
Fisherman's consent. Lucky Fisherman Fleet paid $21,000 on March 1, 2021, for the first year's accommodations. The market rate of
interest is 7%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables
provided.)
Required:
Prepare the appropriate entry(s) for Lucky Fisherman Fleet at March 1, the commencement of the agreement. (If no entry is required
for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to the nearest whole
dollar amount.)
View transaction list
Record the journal entry needed at commencement of
the lease.
Record the cash payment.
:X:
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