User Account

All Pages

National distribution center sold its office building

Assignment Help Accounting Basics
Reference no: EM131005279

To raise operating funds, National Distribution Center sold its office building to an insurance company on January 1, 2011, for $800,000 and immediately leased the building back. The operating lease is for the final 12 years of the building's estimated 50-year useful life. The building has a fair value of $800,000 and a book value of $650,000 (its original cost was $1 million). The rental payments of $100,000 are payable to the insurance company each December 31. The lease has an implicit rate of 9%.

Required:

Prepare the appropriate entries for National Distribution Center on:

1. January 1, 2011, to record the sale-leaseback.

2. December 31, 2011, to record necessary adjustments. 

Reference no: EM131005279

Questions Cloud

Include any appropriate journal entries in your response : How might your solution differ if National Distribution Center prepares its financial statements according to International Financial Reporting Standards? Include any appropriate journal entries in your response.
Differences in the ethical and values-driven considerations : Evaluate differences in the ethical and values-driven considerations of the two types of organization development practitioners, as well as the different ways each type of practitioner might deal with ethical dilemmas
Goal of using media to teach character development : Movies and videos provide opportunities for critical reflection and the development of media literacy. This activity will provide you with the opportunity to practice being a critical consumer of films as a form of media.
Should population be controlled for environmental reasons : Should human population be controlled for environmental reasons? On CULearn there is a short paper by Garrett Hardin entitled "Carrying Capacity and Quality of Life."
National distribution center sold its office building : To raise operating funds, National Distribution Center sold its office building to an insurance company on January 1, 2011, for $800,000 and immediately leased the building back.
Develop a control strategy for the project proposal : Develop a control strategy for the project proposal chosen by the team. Address the following components in the control strategy: Project evaluation, Project schedule and Budget control
How might your solution differ if national distribution : How might your solution differ if National Distribution Center prepares its financial statements according to International Financial Reporting Standards? Include any appropriate journal entries in your response.
What role should organization development practitioner play : What role should an organization development practitioner play in ensuring that the organization successfully transitions to the point where change has become institutionalized
Difference between transactional and analytical information : Describe the difference between transactional and analytical information, and determine which of these types Spotlight used to identify its 10 tribes

Reviews

Write a Review

Accounting Basics Questions & Answers

  Create a nested function in cell h2 that looks up the

create a nested function in cell h2 that looks up the location code from the beaches worksheet looking for an exact

  Jordan who is paid monthly is single and claims 0

jordan who is paid monthly is single and claims 0 deductions. he earns 100000 per year as a manager at a firm.

  Should the cash value of oberstars meals be included

Alex Oberstar, a cook in the Lagomarsino Company cafeteria, is furnished two meals each day during his eight-hour shift. Oberstar's duties require him to have his meals on the company's premises.

  Wealth manager choose to allocate some of a client asset

Why would a wealth manager choose to allocate some of a client's asset to another bank?

  What is the role of fair value in accounting for investments

What is the role of fair value in accounting for investments? What are the differences between trading securities, available-for-sale securities, and held-to-maturity securities?

  Compute the net realizable value at the end of 20x1 and

1. recognition of concepts. jim armstrong operates a small company that books entershytainers for theaters parties

  You are managing a systems development team for a company

You are managing a systems development team for a company you are familiar with. The company wants to implement a new accounting information system. Your team has been asked to review the process prior to implementation.

  Determining revised annual depreciation

On this date the company concludes that the equipment has a remaining useful life of two years with the same salvage value. Compute the revised annual depreciation.

  A company paid 150000 plus a 6 commission and 4000 in

a company paid 150000 plus a 6 commission and 4000 in closing costs for a property. the property included land

  The supplies account has a balance of 1200 at the beginning

the supplies account has a balance of 1200 at the beginning of the year and was debited during the year for 2300

  A company is considering replacing an old piece of

a company is considering replacing an old piece of machinery which cost 600000 and has 350000 of accumulated

  Accounting department to help confirm

What information would you request from the accounting department to help confirm or negate these accusations?

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