User Account

All Pages

Prepare the lease receipt schedule for the lessor

Assignment Help Accounting Basics
Reference no: EM132605518

On 1 July 2015, Clementi Ltd leased a processing plant to Jurong Ltd. The plant was purchased by Clementi Ltd on 1 July 2015 for its fair value of $895,304. The lease agreement contained the following provisions:

Lease term                                                             $300,000

Economic life of plant                                                  $180,000

Annual rental payment, in arrears (commencing 30/6/2016)        $100,000

Residual value at end of the lease term Residual guaranteed by lessee

Interest rate implicit in lease                                              7%

The lease is cancellable only with the permission of the lessor.

3 years

4 years

The $300,000 annual rental payment include $20,000 to reimburse Clementi Ltd for the maintenance of the plant.

Jurong Ltd intends to return the processing plant to the lessor at the end of the lease term.

Required

Question a) Prepare the lease payment schedule for the lessee (show all workings).

Question b) Write the journal entries in the records of the lessee for the year ending 30 June 2016 ONLY.

Question c) Prepare the lease receipt schedule for the lessor (show all workings).

Question d) Write the journal entries in the records of the lessor for the year ending 30 June

Reference no: EM132605518

Questions Cloud

Post descriptions of the tools and links to the tools : Research 2 log parsing tools. These are tools that will help you read logs more effectively. Post descriptions of the tools and links to the tools.
Define whether or not proper monitoring would have detected : Research an incident that has been identified within the last year that resulted in a breach of security. Determine whether or not proper monitoring would have.
Describe the step by step response to the intrusion : Utilizing your Incident Response Plan detail a step by step response to this intrusion from beginning to end. Who, when, what, how are all required.
How do required the board of directors has approached : How Required the board of directors has approached you for advice regarding the disclosures, if any, that are required for this change in accounting policy.
Prepare the lease receipt schedule for the lessor : Write the journal entries in the records of the lessee for the year ending 30 June 2016 ONLY. Prepare the lease receipt schedule for the lessor
Discuss about the enterprise environment : Considering the enterprise environment, detail two methodologies for obtaining buy-in from an organization's executive team in support of network monitoring.
Define method you use to collect and analyze network traffic : Detail two methods you would use to collect and analyze network traffic. Participate in the weekly discussion. Post your initial 250 word minimum response.
Themes of art are similar across time and culture : Discuss in what ways artists and their subjects or themes of art are similar across time and culture.
Find what is the current economic value of an inheritance : Find What is the current economic value of an inheritance that will pay $3400 to the beneficiary at the beginning of every three months for 20 years

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.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd