Prepare Oriole lease amortization schedule

Assignment Help Accounting Basics
Reference no: EM132280402

Question - Oriole Limited has signed a lease agreement with Lantus Corp. to lease equipment with an expected lifespan of eight years, no estimated salvage value, and a cost to Lantus of $204,000. The terms of the lease are as follows:

The lease term begins on January 1, 2016, and runs for 5 years.

The lease requires payments of $49,775 at the beginning of each year starting January 1, 2016 which includes $4,900 for maintenance and insurance costs.

At the end of the lease term, the equipment is to be returned to the lessor.

Lantus' implied interest rate is 5%, while Oriole's borrowing rate is 6%. Oriole uses straight-line depreciation for similar equipment. The year-end for both companies is December 31.

Assume that both companies follow ASPE.

Prepare Oriole's lease amortization schedule using the effective interest method.

Reference no: EM132280402

Amount of gross profit realized

Compute the amount of gross profit realized each year, assuming Barkly uses the cost-recovery method. Compute the amount of gross profit realized each year, assuming Barkly us

Problem to internal controls

Imagine that a coworker wants to circumvent an internal control to steal money from your company. Speculate on two (2) internal controls that your coworker might attempt to

Explain advantage of centralized system of maintaining store

ACCT 219- Explain the advantages of centralized system of maintaining stores. Explain the assumptions behind the determination of Economic Order Quantity (EOQ). The following

Explain the requirements for the use of each one

32. List the five types of filing status and briefly explain the requirements for the use of each one.  33. In which of the following cases may the taxpayer claim head of hous

Probability or a relative frequency probability

Decide if the probability described is a subjective (personal) probability or a relative frequency probability: A quarter is flipped 2000 times and results in 500 heads. The

What accounts are likely to be overstated or understated

Your client, a manufacturer of computer components has experienced slowing demand for its product. Recently, it cut back from three shifts a day to two shifts a day and the

Determining the correct amount of inventory

FOB destination, that will be received by Hastings on January 3. Determine the correct amount of inventory that Hastings should report.

Compute the loss national organization bank

Assuming that both Botosan Company and National Organization Bank use the effective-interest method to amortize the discount, prepare the amortization schedule for the note.


Write a Review

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