Lanéo entered into a finance lease of a forklift truck as lessor. At 1 January 20X1, its net investment in the lease is 120,000; the interest rate implicit in the lease is 5 %. The lessee pays 30,000 on 31 December 20X1 (in arrears). Record the lessor's entries at 31 December 20X1: finance income, then collection of the payment.
- Net investment at 1 January 20X1
- 120,000
- Interest rate implicit in the lease
- 5 %
- Payment received on 31 December 20X1
- 30,000