Montana''s capital lease, Financial Accounting

Montana Company signs a five-year capital lease with Elway Company for office equipment. The yearly lease payment is $20,000, and the interest rate is 8%.

 

1. Compute the current value of Montana's five-year lease payments.

2.  Prepare the journal entry to record Montana's capital lease at its inception.

 

Posted Date: 3/25/2013 1:43:37 AM | Location : United States







Related Discussions:- Montana''s capital lease, Assignment Help, Ask Question on Montana''s capital lease, Get Answer, Expert's Help, Montana''s capital lease Discussions

Write discussion on Montana''s capital lease
Your posts are moderated
Related Questions
Liquidity Ratios - These ratios include the Current Ratio and the Quick Ratio or the acid test ratio. Liquidity ratios show the Liquid position of a company in the short term i.e

what are five modern techniques of accounting

At one time, Circle K was the second-largest convenience store chain in the United States. At its peak, Circle K operated 4,685 stores in 32 states. Circle K's rapid expansion was

Clemens Cars' job cost sheet for job A40 shows that the cost to add security features to a car was $10,500. The car was delivered to the customer, who paid $14,900 in cash for the

Assume Mr. Ram deposits Rs. 10,000 annually in a bank for 5 years, at 10 percent compound interest rate. Compute the value of this series of deposits on the end of five years by as

How should I handle Booking an invoice in one month for Raw material that has not been received until the following month?

Q. Explain about Spring and Forward loading? Spring loading - Timing of option grants to occur before good news or after bad news is released Concerns about insider trading

Q. Explain about Material event? Subsequent Event - Material event which takes place after the end of accounting period and before the publication of an entity's FINANCIAL STAT

A classmate is considering dropping his or her accounting class because he or she cannot understand the rules of debits and credits. Explain the rules of debits and credits in a wa

Students are to prepare and report as a financial advisor to an investor as to whether the public company selected is a suitable investment for the investor. In preparing the essay