Prepare the journal entry harbor will record at inception

Assignment Help Financial Accounting

Reference no: EM13775753

Harbor (lessee) signs a five-year capital lease for office equipment with a $10,000 annual lease payment. The present value of the five annual lease payments is $41,000, based on a 7% interest rate.

1. Prepare the journal entry Harbor will record at inception of the lease.

2. If the leased asset has a five-year useful life with no salvage value, prepare the journal entry Harbor will record each year to recognize depreciation expense related to the leased asset.

Reference no: EM13775753

Questions Cloud

The process for dna analysis on the decomposing body : When you arrive on the scene, what is your first course of action? Describe your process, and be specific.

What are the keys to building and implementing a successful : What are the keys to building and implementing a successful business.

Statement of cash flows for proprietary funds : Discuss the similarities and dissimilarities between the Statement of Cash Flows for Proprietary Funds and a Statement of Cash Flows of a for-profit business.

Polydispersity index for the molecular weight : Calculate Mn & Mw, and the polydispersity index for the molecular weight data provided below and graph. Repeat your calculations if the molecular weight data were changed by increasing the frequency

Prepare the journal entry harbor will record at inception : Harbor (lessee) signs a five-year capital lease for office equipment with a $10,000 annual lease payment. The present value of the five annual lease payments is $41,000, based on a 7% interest rate. Prepare the journal entry Harbor will record at inc..

What search patterns may be utilized at this crime scene : What search patterns may be utilized at this crime scene? Why did you make the choice to use this particular search pattern for your recovery efforts

What were the firms budgeted payments : Digregory makes all purchases on account, subject to the following payment pattern: If purchases for January, February, and March were $195,000, $175,000, and $225,000, respectively, what were the firm's budgeted payments in March?

Compute the total labor variance : Lewis Company’s standard labor cost of producing one unit of Product DD is 3.90 hours at the rate of $12.00 per hour. During August, 40,500 hours of labor are incurred at a cost of $12.13 per hour to produce 10,200 units of Product DD. Compute the to..

Anthrax was used as a weapon of terror in the united states : In the fall of 2001, anthrax was used as a weapon of terror in the United States when it was sent to numerous media and political organizations and individuals, including Tom Brokaw of NBC News, Dan Rather of CBS News, and U.S. Senators. According to..

User Account

All Pages