User Account

All Pages

Leased office space under a capital lease

Assignment Help Accounting Basics
Reference no: EM13880891

1.On January 1, 2013, National Insulation Corporation (NIC) leased office space under a capital lease. Lease payments are made annually. Title does not transfer to the lessee and there is no bargain purchase option. Portions of the lessee's lease amortization schedule appear below:

343_270-B-A-A-L (524).png

Required:
1. What is NIC's lease liability at the inception of the lease (after the first payment)?
2. What amount would NIC record as a leased asset?
3. What is the lease term in years?
4. What is the asset's residual value expected at the end of the lease term?
5. How much of the residual value is guaranteed by the lessee?
6. What is the effective annual interest rate?
7. What is the total amount of minimum lease payments?
8. What is the total effective interest expense recorded over the term of thelease? 

Reference no: EM13880891

Questions Cloud

What mix of vehicles should it produce : The company seeks to maintain a fleetwide average of 32 miles per gallon. To maximize its fleetwide average contribution (cell E12), how much aluminum should the maker add to each vehicle, and what mix of vehicles should it produce?
Explain the spill response and cleanup problems associated : Explain the spill response and cleanup problems associated with water-soluble liquids
Developing accounting measurement rules in united states : Briefly describe the organization that is responsible for developing accounting measurement rules (generally accepted accounting principles) in the United States.
Provide recommendations for preventing spills or releases : Provide recommendations for preventing spills or releases
Leased office space under a capital lease : 1.On January 1, 2013, National Insulation Corporation (NIC) leased office space under a capital lease. Lease payments are made annually.
How much would they pay for the mortgage : Secondary Loan Company wants to purchase your mortgage from the local bank. The original loan amount was $200,000 for 30-years at an interest rate of 4%. The loan was made two (2) years ago. If Secondary Loan Company requires a 6% return, how much wo..
Color-coded map of surface temperature distribution : The structural components of modern aircraft are commonly fabricated of high-performance composite materials. These materials are fabricated by impregnating mats of extremely strong fibers that are held within a form with an epoxy or thermoplastic..
How many of each type of bike should cmc manufacture : What is the shadow price of ingredient C and how much should Snoo be willing to pay for an additional pound of ingredient C to raise total profit?
What is the combined interest cost of financing package : A borrower is considering the following loan package for a $400,000 home purchase: What is the combined interest cost (effective cost) of this financing package?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Strengths and weaknesses of community health systems

Strengths and weaknesses of Community Health Systems.

  An investor purchased 500 shares of common stock 25 par

an investor purchased 500 shares of common stock 25 par for 21750. subsequently 100 shares were sold for 49.50 per

  Discuss the civil liability of auditors

Discuss the civil liability of auditors to third parties under Federal Securities Laws. Do the auditors have any defenses against suits under such laws?

  The company applies manufacturing overhead on the basis of

job 484 was recently completed. the following data have been recorded on its job cost sheetdirect materials 57240direct

  Accept an order at a reduced selling price

What relevant costs might you consider in deciding whether to accept an order at a reduced selling price? What costs would you not consider when making your decision?

  The president is also concerned that administrative

a comparative income statement is given below for ryder company ryder company comparative income statementthis year

  Separate accounts payable computer systems

Wishbone Company maintains two separate accounts payable computer systems. One is known to all the users, and is used to process payments to vendors.

  Expected eps of phoenix corporation

Calculate your times interest earned ratio both with and without the new debt financing. Calculate the expected EPS next year, both with and without the new debt financing.

  The form of income statement that derives its name from the

1. xyz co. received 3000 in payments from clients for services billed in a previous month. which accounts will be

  Debra manufacturing has identified that the cost of a new

debra manufacturing has identified that the cost of a new computer will be 120000 but with the use of the new computer

  Rocky mountain chocolates rmc experiences much greater

rocky mountain chocolates rmc experiences much greater demand during the holidays than during the remainder of the

  Vandross company has recorded bad debt expense in the past

vandross company has recorded bad debt expense in the past at a rate of 1.5 of net sales. in 2012 vandross decides to

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd