User Account

All Pages

George company manufactures a computer

Assignment Help Accounting Basics
Reference no: EM131110552

1. George Company manufactures a computer with an estimated economic life of 12 years and leases it to National Airlines for a period of 10 years. The normal selling price of the equipment is $278,072, and its unguaranteed residual value at the end of the lease term is estimated to be $20,000. National will pay annual payments of $40,000 at the beginning of each year and all maintenance, insurance, and taxes. George incurred costs of $180,000 in manufacturing the equipment and $4,000 in negotiating and closing the lease. George has determined that the Collectibility of the lease payments is reasonably predictable, that no additional costs will be incurred, and that the implicit interest rate is 10%. (Round all numbers to the nearest dollar.)

(a) Discuss the nature of this lease in relation to the lessor and compute the amount of each of the following items.

(1) Lease receivable.

(2) Sales price.

(3) Cost of sales.

(b) Prepare a 10-year lease amortization schedule.

(c) Prepare all of the lessor's journal entries for the first year. 

Reference no: EM131110552

Questions Cloud

Global communications worksheet : Your supervisor wants to send a brief e-mail message to welcome employees who have recently transferred to your department from Brazil, Russia, India, and China. He has written a draft message and would like your feedback.
Discuss the nature of this lease in relation to the lessee : Discuss the nature of this lease in relation to the lessee, and compute the amount of the initial obligation under capital leases.
The deeper currents of culture as well as how processes : Premise: You show up for work in a new organization or "parachute" into the organization (often knowing little about the organization). This analytical paper describes how you observe and orient in this new environment to more fully understand the ..
Prepare a case analysis on aviation security : Prepare a Case Analysis on Aviation Security. Review what others did regarding the case. Provide recommendations (identify courses of action; what would you do differently?)
George company manufactures a computer : George Company manufactures a computer with an estimated economic life of 12 years and leases it to National Airlines for a period of 10 years.
Shapiro inc was incorporated in 2010 : Shapiro Inc. was incorporated in 2010 to operate as a computer software service firm with an accounting fiscal year ending August 31.
Calculate the firm tax on its operating earnings only : Calculate the firm's tax on its operating earnings only. Find the tax and the after-tax amount attributable to the interest income from Zig Manufacturing bonds. Find the tax and the after-tax amount attributable to the dividend income from the Tank I..
Perl one of the main strengths of the perl programming : Cookies management with Perl One of the main strengths of the Perl programming language are its powerful text manipulation features. In this assignment, you will put them to use for writing a Perl program that can manage a simplified version of the s..
Plot the marginal tax rates : Find the marginal tax rate for the following levels of corporate earnings before taxes: $15,000; $60,000; $90,000; $200,000; $400,000; $1 million; and $20 million. Plot the marginal tax rates (measured on the y axis) against the pretax income levels ..

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd