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Water world Company leased equipment from Costner Company. The lease term is 4 years and requires equal rental payments at the beginning of each year. The equipment has a fair value at the inception of the lease of $150,000, an estimated useful life of 4 years, and no salvage value. Water world pays all executor costs directly to third parties. The appropriate interest rate is 10%. Prepare Waterworld’s January 1, 2014, journal entries at the inception of the lease. (Hint: you must calculate the amount of the lease payment)
After performing a physical count of inventory at the end of the accounting period, it was discovered that the amount of inventory on hand was less than the accounting records
On April 1, 2014, Rasheed Company assigns $526,400 of its accounts receivable to the Third National Bank as collateral for a $320,000 loan due July 1, 2014. The assignment agr
The marketing manager argues that a $8,200 increase in the monthly advertising budget would increase monthly sales by $16,000. Calculate the increase or decrease in net operat
Prepare an Income Statement for Clever Foods for August2016 in good form.Clever Foods pays taxes at the rate of 25% if it has income. If Clever Foods has a loss, there is no
ow would you compare the MACRS method for personal property to non-tax financial depreciation? Describe the MACRS system for personal property in terms of both (1) Recovery Pe
Analyze the major pros and cons of preparing company budgets. Determine at least two (2) critical budget items that you believe are essential in managing a company. Provide a
During 2011, Tommy's Toys reported the following: short-term borrowings of $419 million; long-term borrowings of $147 million; long-term debt repayments of $45 million; inte
The Filling Department of Savannah Lotion Company had 3,000 ounces in beginning work in process inventory (60% complete). During the period, 40,400 ounces were completed. The
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