Prepare a partial amortization table

Assignment Help Accounting Basics
Reference no: EM132088298

Question: XYZ Company as the lessee records a capital lease of equipment on January 1, 2015. The five annual lease payments of $58,000 are made at the beginning of each year. The present value of the lease payments at 8% is $250,000. XYZ uses the straight line method for depreciation (no residual value).There is no transfer of ownership and there is no bargain purchase option. The equipment will have a life of 10 years.

Instructions: (a) Prepare a partial amortization table for 2015 (provided for you) and 2016. Compute the necessary blanks (not all will be used) in the table below that allow you to arrive at the lease obligation balance at 1/1/2016.

(b) Prepare all of XYZ's journal entries for 2015 and the entry for the lease payment for 2016.

Reference no: EM132088298

Questions Cloud

Commercial would have done better in another quarter : Do you think this commercial would have done better in another quarter, or at a different time during the game?
Is it possible to have a negative cash cycle : is it possible to have a negative cash cycle (receive your funds before encumbering them?)
Interest rate cannot fall below : The interest rate cannot fall below the net rate from storage, is a true or false. Please can someone explain?
Values and beliefs between manager and employee : How does a manager reach out to employees when there are critical differences in values and beliefs between manager and employee?
Prepare a partial amortization table : XYZ Company as the lessee records a capital lease of equipment on January 1, 2015. The five annual lease payments of $58,000 are made at the beginning.
What is the effective financing rate for a us : Based on this information, what is the effective financing rate for a U.S. firm that takes out a one-year, uncovered NZ$ loan?
Explain what you can do to develop these skills : Analyze your ability to incorporate these strategies into a consulting project. Identify the skills you are lacking to use these strategies.
Complete the goals of the company that have the most value : Prioritize what has to be done in order of importance. Complete the goals of the company that have the most value.
What are neil and callie bases in the partnership interest : This year, Callie and Neil formed the equally owned CN partnership. Callie contributed $300,000 of cash and Neil contributed real estate valued at $450,000.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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