+1-415-670-9189
info@expertsmind.com
Record the adjustment to ahold balance sheet
Course:- Accounting Basics
Reference No.:- EM132048556




Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Accounting Basics

Question - On January 1, 2012, Royal Ahold disclosed the following information about its operating lease commitments:

(E millions) 2010 2011

Within one year $655 $ 677

Between one and five years $2,194 $2,245

After five years $3,130 $3,016

Total $5,979 $5,938

Ahold's operating lease expense in 2011 amounted to $635 million. Assume that Ahold records its finance lease liabilities at an interest rate of 8.4 percent. Use this rate to capitalize Ahold's operating leases at January 1, 2011 and 2012.

a. Record the adjustment to Ahold's balance sheet at the end of 2010 (i.e., January 1, 2011) to reflect the capitalization of operating leases.

b. How would this reporting change affect Ahold's income statement in 2011?




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
Gardial & Son has an ROA of 12%, a 5% profit margin, and a return on equity equal to 20%. What is the company's total assets turnover? What is the firm's equity multiplier?
Traded the old company equipment for a new truck issuing a check to complete the transaction. The old used truck cost $3,800 and on September 30, the end of the quarter, had
Describe ways each organization will communicate with leadership to ensure alignment of organizational goals and gain buy-in from staff to achieve compliance with the standa
As you have learned in this week's readings the Accounting Equation is Assets = Liabilities + Owners' Equity. Is the accounting equation true in all instances? Provide sampl
A Company sells two products, J and K. The sales mix is 4 units of J and 3 units of K. The contribution margins per unit are $ 40 for J and $ 20 for K. Fixed costs are $ 6,1
Obtain the most current accounting standards on accounting for hedges of available-for sale securities. determine whether hedge accounting can be used in the scenario propose
Are there any maintenance fees associated with the account at either brokerage firm? Now assume that you have a margin account and the balance is $3,000. Calculate the intere
Research Problem 2. Your client, John Butler, is an avid Houston Astros fan. Last March at the Astros' home opener, as a result of a random drawing of those in attend- ance