Prepare all necessary journal entries for watkins for 2011

Assignment Help Accounting Basics
Reference no: EM131110297

1. Lessor Entries, Sales-Type Lease Watkins Company, a machinery dealer, leased a machine to Romero Corporation on January 1, 2011. The lease is for an 8-year period and requires equal annual payments of $38,514 at the beginning of each year. The first payment is received on January 1, 2011. Watkins had purchased the machine during 2010 for $170,000. Collectibility of lease payments is reasonably predictable, and no important uncertainties surround the amount of costs yet to be incurred by Watkins. Watkins set the annual rental to ensure an 11% rate of return. The machine has an economic life of 10 years with no residual value and reverts to Watkins at the termination of the lease.

(a) Compute the amount of the lease receivable.

(b) Prepare all necessary journal entries for Watkins for 2011. 

Reference no: EM131110297

Questions Cloud

Oligopolistic firm achieves profit maximization : List and explain the conditions under which the Oligopolistic firm achieves profit maximization and loss minimization. Be thorough. i. Using the MR MC approach, discuss how to determine when the oligopolistic firm maximizes profit or minimizes loss i..
What is an example of reasonable accommodation : Berks Manufacturing requires all of its nondisabled employees to retire when they become eligible for Medicare. What law is this employer breaking?
How would the project free cash flow be affected : If the firm in Problem 4 were to decide to use 50% debt, how would the Project Free Cash Flow be affected? Calculate the Project and Equity Free Cash Flows for the following scenario. We want to finance a project with 30% debt.
List and describe the function of the following scene editor : List and describe the function of the following Scene Editor layout tools: the Pointer tool, the Vertical tool, the Turn tool, the Rotate tool, and the Tumble tool.
Prepare all necessary journal entries for watkins for 2011 : Compute the amount of the lease receivable. Prepare all necessary journal entries for Watkins for 2011.
What occurs when the minimum wage is increased : Provide a graphical example of what could potentially happen to the number of people employed in an economy if the government were to decide to raise the minimum wage. Provide an explanation of what occurs when the minimum wage is increased.
What is the best estimate of the stocks price per share : The balance sheet show $ 20 million of short-term investment that are unrelated to investment, $30 million of long-term debt, $40 million of preferred stock, and $100 million of common equity. What is the best estimate of the stock's price per shar..
What is each driver price elasticity of demand : Two drivers—Walt and Jessie—each drive up to a gas station. Before looking at the price, each places an order. Walt says, “I’d like 10 gallons of gas.” Jessie says, “I’d like $10 worth of gas.” What is each driver’s price elasticity of demand?
How can we live humane and reasonably comfortable life : How can we live a humane and reasonably comfortable life, without degrading or destroying the resources and atmosphere of the planet? Can business bring prosperity to poor peoples with decent pay, hours, and working conditions?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Strict cost-plus pricing system for all its books

Would you expect a publishing company to use a strict cost-plus pricing system for all its books? How might you find some indication about whether a publishing company actually was using cost-plus pricing for all its books?

  The assets of a corporation that has the liabilities of

determine the stockholders equity for the given info.a the stockholders equity of a corporation has assets of 445000

  This company see saw co pays a weekly payroll assume that

this company see saw co. pays a weekly payroll. assume that the social security tax rate is 6.0 on the first 100000 of

  Prepare the entry for the exchange

Equipment that cost $80,000 and has accumulated depreciation of $63,000 is exchanged for similar equipment with a fair value of $35,000 and $15,000 cash is received. The exchange lacked commercial substance.

  Consultant to investigate a potential violation of corporate

Suppose a large aerospace engineering firm has immediately hired you as a consultant to investigate a potential violation of corporate policy and data theft. You have been informed that an employee may have been using corporate email to send confi..

  Evaluating back charges

An engineering firm is evaluating their back charges, and from this they claim that their average back charge is $1800. They randomly select 42 customers, and calculate the sample mean back charge to be $2010.

  You have started a business that has now been going for a

you have started a business that has now been going for a couple of years. due to the increased volume in sales you

  The following are the transactions for smiley

the following are the transactions for smiley inc.lt?xmlnamespace prefix o ns urnschemas-microsoft-comofficeoffice gt

  Soft touch company was started several years ago

Prepare the statement of cash flows for the current year ended December 31 using the indirect method. Use the statement of cash flows to evaluate the company's cash flows.

  Search the course background information the internet andor

there are three main parts to this case that requires you to prepare and submit a three to five page paper. please make

  Miles co. had these transactions during the current period

Miles Co. had these transactions during the current period. Prepare the journal entries for the preceding transactions.

  1 how is the income statement of service company different

1. how is the income statement of a service company different from the income statement of a merchandising company?2.

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