Prepare appropriate entries for mid-south urologists group

Assignment Help Financial Accounting
Reference no: EM131267763

Rand Medical manufactures lithotripters. Lithotripsy uses shock waves instead of surgery to eliminate kidney stones. Physicians' Leasing purchased a lithotripter from Rand for $1,940,000 and leased it to Mid-South Urologists Group, Inc., on January 1, 2016. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Lease Description: Quarterly lease payments $ 126,600 —beginning of each period Lease term 5 years (20 quarters) No residual value; no BPO Economic life of lithotripter 5 years Implicit interest rate and lessee's incremental borrowing rate 8 % Fair value of asset $ 1,940,000 Collectibility of the lease payments is reasonably assured, and there are no lessor costs yet to be incurred.

Prepare appropriate entries for both Mid-South Urologists Group and Physicians' Leasing from the inception of the lease through the second rental payment on April 1, 2016. Depreciation is recorded at the end of each fiscal year (December 31). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Mid-South Urologists Group (Lessee):

1. Record lease.

2. Record cash payment.

3. Record cash payment.

Physicians' Leasing (Lessor):

1. Record lease.

2. Record cash payment.

3. Record cash payment.

Reference no: EM131267763

Questions Cloud

Internal event which should be recorded as transaction : Several events are listed below. Indicate whether each event is an external event that should be recorded as a transaction, an internal event which should be recorded as a transaction, or an event which should not be recorded. Federal income tax retu..
Adjusting entry to record accrued interest : Yeats Company issued a $5,000 face value note to the State Bank on December 1, Year XXX1. The note had a 12 percent annual rate of interest and a one-year term. The adjusting entry to record accrued interest on December 31, Year XXX1, would.
Paid off in regular quarterly payments : A mortgage that was orignally $20000 is being paid off in a regular quarterly payments of $500. The interest rate is 8% compounded quarterly. How much of the principal remains after 9 years, or 36 payments?
Gross margin-operating income-deprecation expense : Here is the assumptions and data; Sales Revenue Year 1: $10,000,000 Annual Growth Rate There after: 4.5%. For year 1: Advertising: $500,000 Payroll: $2,500,000 Utilities: $150,000 Services: $150,000. Assume an annual growth rate of 3% for all of thes..
Prepare appropriate entries for mid-south urologists group : Rand Medical manufactures lithotripters. Lithotripsy uses shock waves instead of surgery to eliminate kidney stones. Physicians' Leasing purchased a lithotripter from Rand for $1,940,000 and leased it to Mid-South Urologists Group, Inc., on January 1..
Prepare entry to record any unrealized holding gain or loss : Shonen Knife Corporation has elected to use the fair value option for one of its notes payable. The note was issued at an effective rate of 11% and has a carrying value of $16,000. At year-end, Shonen Knife's borrowing rate (credit risk) has declined..
Annual depreciation computed by the straight line method : A refrigerator used by a meat processor has a cost of $60,000, and estimated value of $12,600, and an estimated useful life of 12 years. What is the amount of the annual depreciation computed by the straight line method?
Repay this loan than you had originally planned : You owe $6,800on a car loan that has an interest rate of 6.75 percent and monthly payments of $310. You lost your job and your new job pays less, so your lender just agreed to lower the monthly payments to $225 while keeping the interest rate at 6.75..
Calculate depreciation expense using straight-line method : Togo's Sandwiches acquired equipment on April 1, 2018, for $18,000. The company estimates a residual value of $2,000 and a five year service life. Calculate depreciation expense using the straight-line method for 2018 and 2019, assuming a December 31..

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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!

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