Use the information for Regina Corporation from BE20–14. Assume instead that the residual value is not guaranteed.

Use the information for Regina Corporation from BE20–14. Assume instead that the residual value is not guaranteed. Prepare Regina’s May 29, 2011 journal entries.

Lease Payments Receivable............... 519,650

Cost of Goods Sold ($265,000 – $22,697*) 242,303

    Sales ($410,000 – $22,697)..........           387,303

    Unearned Interest Income—Leases.....           109,650

    Inventory...........................           265,000

* ($40,000 X .56743) = $22,697

 ($95,930 X 4.03735) = $387,303

 ($95,930 X 5) + $40,000 = $519,650

Cash....................................  95,930

    Lease Payments Receivable...........            95,930