Prepare partial statement of financial position

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Reference no: EM131260949

Frisco Enterprises entered into a lease agreement with Ebby Real Estate Properties Characteristics of the Lease is listed below: a. Date of lease agreement is January 1, 2015 b. The lease is for a suite in an Office Building located on Main Street- address is 5411 Main Street Frisco, TX 75034 c. The lease is non-cancelable d. The duration of the lease is eight years e. The lease payments are $36,000 per year f. The first payment is due on January 1, 2015 g. The remaining seven payments are due on December 31 of each year or you can say January 1 - this is an Annuity Due. Remember one day is irrelevant so January 1 and December 31 is irrelevant in terms of substance and materiality. h. The incremental borrowing rate for Frisco Enterprises is 8%. i. The incremental borrowing rate for Ebby Real Estate Properties is 7% and is not known by Frisco Enterprises j. Frisco Enterprises amortizes and depreciates all assets on a straight-line basis k. The residual value is $0 R Requirement: You must utilize the time value of money tables in the textbook. I will not grant credit for the use of a calculator. Your answer is to be within +/- $5 of my answer - therefore a calculator will utilize a different result and partial credit will not be granted. Utilize excel then type your answer Prepare a partial Statement of Financial Position for Frisco Enterprises for the year ending December 31, 2016. You are required to use the proper heading for the Statement of Financial Position.

Reference no: EM131260949

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