User Account

All Pages

National distribution center sold its office building

Assignment Help Accounting Basics
Reference no: EM131005279

To raise operating funds, National Distribution Center sold its office building to an insurance company on January 1, 2011, for $800,000 and immediately leased the building back. The operating lease is for the final 12 years of the building's estimated 50-year useful life. The building has a fair value of $800,000 and a book value of $650,000 (its original cost was $1 million). The rental payments of $100,000 are payable to the insurance company each December 31. The lease has an implicit rate of 9%.

Required:

Prepare the appropriate entries for National Distribution Center on:

1. January 1, 2011, to record the sale-leaseback.

2. December 31, 2011, to record necessary adjustments. 

Reference no: EM131005279

Questions Cloud

Include any appropriate journal entries in your response : How might your solution differ if National Distribution Center prepares its financial statements according to International Financial Reporting Standards? Include any appropriate journal entries in your response.
Differences in the ethical and values-driven considerations : Evaluate differences in the ethical and values-driven considerations of the two types of organization development practitioners, as well as the different ways each type of practitioner might deal with ethical dilemmas
Goal of using media to teach character development : Movies and videos provide opportunities for critical reflection and the development of media literacy. This activity will provide you with the opportunity to practice being a critical consumer of films as a form of media.
Should population be controlled for environmental reasons : Should human population be controlled for environmental reasons? On CULearn there is a short paper by Garrett Hardin entitled "Carrying Capacity and Quality of Life."
National distribution center sold its office building : To raise operating funds, National Distribution Center sold its office building to an insurance company on January 1, 2011, for $800,000 and immediately leased the building back.
Develop a control strategy for the project proposal : Develop a control strategy for the project proposal chosen by the team. Address the following components in the control strategy: Project evaluation, Project schedule and Budget control
How might your solution differ if national distribution : How might your solution differ if National Distribution Center prepares its financial statements according to International Financial Reporting Standards? Include any appropriate journal entries in your response.
What role should organization development practitioner play : What role should an organization development practitioner play in ensuring that the organization successfully transitions to the point where change has become institutionalized
Difference between transactional and analytical information : Describe the difference between transactional and analytical information, and determine which of these types Spotlight used to identify its 10 tribes

Reviews

Write a Review

Accounting Basics Questions & Answers

  The following total costs were reported last year direct

motor company manufactures 10000 units of part m-l each year for use in its production. the following total costs were

  Explanation of the supporting rationale

Write a paper of 4-6 body pages that answers the following questions, including an in-depth explanation of the supporting rationale:

  Ending baldwins balance in common stock be next year

Suppose next year the Baldwin Company generates $44,200 in net profit, pays $12,000 in dividends, total assets increase by $55,000, and total liabilities remain unchanged. What will ending Baldwins balance in Common Stock be next year?

  Costello corporation manufactures a single product the

costello corporation manufactures a single product. the standard cost per unit of product is shown below. direct

  Calculate the price per trip that the internal service fund

Based on the following information calculate the price per trip that the Internal Service Fund needs to charge users of the motor pool during calendar year 2013 in order to break even

  Firm a had a 15 marginal tax rate and firm z has a 28

firm a had a 15 marginal tax rate and firm z has a 28 marginal tax rate. firm a owns a controlling interest in firm z.

  Des moines manufacturing company has the following

des moines manufacturing company has the following information month budgeted sales january 76000 february 85000 march

  Various activities at ming corporation a manufacturing

various activities at ming corporation. a manufacturing company are listed below. each activity has been classified as

  Role of internal controls in the prevention of fraud

Conduct a professional accounting research on the Satyam's fraud case and answer the following questions: Discuss the circumstances under which Satyam's fraud was exposed? What do you think were the reasons for the fraud? Could this fraud have been..

  Components of postretirement benefit expense

The components of postretirement benefit expense are similar to the components of pension expense. How does the service cost component differ between the two expenses?

  Depreciable asset

When a depreciable asset is sold:

  What are the amounts and descriptions for all of the

obtain an annual report from a publicly traded corporation that is interesting to you. be sure the company has property

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