Find what amount of profit on the sale and interest revenue

Assignment Help Financial Accounting
Reference no: EM132575820

Question 1: JP Co. leased equipment from Joe Corp. on July 1, year 1 for an eight-year period expiring June 30, year 9. Equal payments under the lease are 600,000 and are due on July 1 of each year. The first payment was made on July 1, year 1. The rate of interest contemplated by JP and Joe is 10%. The cash selling price of the equipment is 3,520,000, and the cost of the equipment on Joe's accounting records is 2,800,000. The lease is appropriately recorded as a sales-type lease. What is the amount of profit on the sale and interest revenue that Joe should record for the year ended December 31, year 1?

Reference no: EM132575820

Questions Cloud

What are some of the diversity ramifications : What are some of the diversity ramifications, and how do health care organizations characterize components such as minority programs?
Role of assisted living programs in america : What do you consider the role of assisted living programs in America? How is assisted living different from residence receiving
How a leader could use tool in guiding organizational change : Select one of the following tools: the nine steps in Ackerman and Anderson's roadmap for change, Cummings and Worley's five dimensions of leading and managing.
Planning an advertising campaign for a new product : Consider a firm that is planning an advertising campaign for a new product. Goals set for the campaign include exposure to at least 100,000 individuals
Find what amount of profit on the sale and interest revenue : Find What is the amount of profit on the sale and interest revenue that Joe should record for the year ended December 31, year 1?
Development approach an important business decision : Who in your organization should participate in the selection process? Why?
How much depreciation should bello enterprises record : How much depreciation should Bello Enterprises record on this machine for the year 2015? What amount should this machine be recorded by Bello
Provide consolidation worksheet adjusting entries : XYZ Limited is a subsidiary of ABC Limited. Provide consolidation worksheet adjusting entries for each of the transactions listed above
Which change model you would follow for short-term change : In 3 - 5 pages, explain which change model you would follow for the short-term change and which you would follow for the long-term change.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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