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!
Loot Ltd manufactures specialized moulding machinery for both sale and lease. On 1 July 2015, Loot Ltd leased a machine to Hotinpursuit Ltd, incurring $1500 in costs to prepare and execute the lease document. The machine being leased cost Loot Ltd $195000to make and its fair value at 1 July 2015 is considered to be $212515.
The terms of the lease agreement are as follows:
Lease term commencing on 1 July 2015 5 years Annual lease payment commencing on 1 July 2016 $57500 Estimated useful life of machine (scrap value $2500) 8 years Estimated residual value of machine at end of lease term $37000 Residual value guaranteed by Hotinpursuit Ltd $25000 Interest rate implicit in the lease 10% The lease is classified as a finance lease.
The annual lease payment includes an amount of $7500 to cover annual maintenance and insurance costs. Actual executory costs incurred for each of the 5 years were:
2015-16 $7200 2016-17 7700 2017-18 7800 2018-19 7100 2019-20 7000 Hotinpursuit Ltd may cancel the lease but will incur a penalty equivalent to 2 years payments if it does so. Hotinpursuit Ltd intends to lease a new machine at the end of the lease term. The end of the reporting period for both companies is 30 June.
Required
Problem 1: Prepare a schedule of lease receipts for Loot Ltd.
Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.
Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.
Prepare a master budget for the three-month period.
Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.
Evaluate the Predetermined Overhead Rate
Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.
Complete the schedule to compute the pool rates for the different activities.
Prepare Company financial statements
This individual assignment is based on the TerraCycle Inc.
Discuss the ethical issues
Calculate the GDP in Income Approach and Expenditure Approach
A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.
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: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd