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
Attribution When individuals monitor performance they attempt to determine if it is inner or outer caused. "Inner caused" means 1 believes that an event was under the personal

Short-term Creditors:   Bankers and another short-term creditor have an interest same to those of the debenture holders and equity shareholders who are interested in the profitabil

Calculation of Leverage ratios  -                     2008 2009 2010 U EBIT or Oper

Sheridon Corporation is investigating automating a process by purchasing a new machine for $515,000 that would have a 10 year useful life and no salvage value. By automating the pr

Question: The manager of Ben and Jerry's Ice Cream is told that the direct material quantity variance for cherries in Cherries Garcia Ice cream is favorable. What could explain thi

how do we calculate bonus issu4 and rights issue

There are two projects A and B. The initial capital outlay of A and B are Rs.1,35,000 and Rs.2,40,000 respectively. There will be no scrap value at the end of the life of both the

methods of preparation of trial balance

What was the business strategy underlying the merger? How was the acquisition financed? Was it a vertical, horizontal or conglomerate merger?   The strategy behind those merge

Your company is considering investing in its own transport fleet. The present position is that carriage is contracted to an outside organization. The life of the transport fleet w