Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
1. George Company manufactures a computer with an estimated economic life of 12 years and leases it to National Airlines for a period of 10 years. The normal selling price of the equipment is $278,072, and its unguaranteed residual value at the end of the lease term is estimated to be $20,000. National will pay annual payments of $40,000 at the beginning of each year and all maintenance, insurance, and taxes. George incurred costs of $180,000 in manufacturing the equipment and $4,000 in negotiating and closing the lease. George has determined that the Collectibility of the lease payments is reasonably predictable, that no additional costs will be incurred, and that the implicit interest rate is 10%. (Round all numbers to the nearest dollar.)
(a) Discuss the nature of this lease in relation to the lessor and compute the amount of each of the following items.
(1) Lease receivable.
(2) Sales price.
(3) Cost of sales.
(b) Prepare a 10-year lease amortization schedule.
(c) Prepare all of the lessor's journal entries for the first year.
1.carter company earned net income of 350000 last year. this year it wants to earn net income of 450000. the companys
sally medavoy will invest 7470 a year for 20 years in a fund that will earn 10 annual interest. if the first payment
At the beginning of Year 1, Ithaca Incorporated purchased land for $1,500,000 from which it expects to extract 800,000 tons of minerals. The estimated residual value is $250,000.
Wheeler Corporation had retained earnings of December 31, 2008 of $ 12 million. During 2009, Wheeler's net income was $ 4 million. The retained earnings balance at the end of 2009 was equal to $ 13 million. Therefore, _________
Catalina works for a regional sales branch of a large pharmaceutical company. Individual employees as well as individual goals, he or she receives a large bonus check at the end of the year.
kent a small texas oil company holds huge reserves of oil and gas assets. assume that at the end of 2008 kents cost of
In a sale-leaseback transaction, the owner of an asset sells it and immediately leases it back from the new owner. The FASB Accounting Standards Codification represents the single source of authoritative U.S. generally accepted accounting principles.
This is a cost allocation problem for a merchandising firm. Since merchandising firms do not have overhead, you must allocate "support costs" instead of "overhead costs." Also, the allocations in this problem are to a product line, not to an indiv..
Northwest Airlines applied mathematical models to determine which customers in its database were currently responsible for most of its profitability and which customers were not currently profitable but had similar characteristics to the most prof..
the following transactions occurred during 2014. assume that depreciation of 10 per year is charged on all machinery
What is the impact on total shareholders' equity
Distinguish between auditing through the computer and auditing with the computer. When are auditors required to audit through the computer as opposed to auditing around the computer?
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd