User Account

All Pages

Prepare the lease schedules for xyz ltd

Assignment Help Accounting Basics
Reference no: EM132698162

On 1 July 2019, XYZ Ltd leased a machinery from ABC Ltd to be used to be used in the mining operations. The machinery cost XYZ Ltd $120 307, considered to be its fair value on that same day. The capital/finance lease agreement contained the following provisions: The lease term is for 3 years, commencing on 1st July 2019 The lease is cancellable and with a 10 % charge of the leased asset's fair value from the lessor Annual lease payment, payable on 30 June each year $40,000 Estimated useful life of machinery 4 years Estimated residual value of the machinery at the end of useful life $6,000 Bargain purchase option that La Ltd can exercise at the end of lease term $15,000 Interest rate implicit in the lease 7%

REQUIRED:

Question 1. Calculate the present value of lease payment.

Question 2. Prepare the lease schedules for XYZ Ltd.

Question 3. Prepare the journal entries in the records of XYZ Ltd only for the year ended 30 June 2020.

Reference no: EM132698162

Questions Cloud

How would measure the success of risk management : How would you measure the success of your risk management strategy? (Hint: Identify goals, critical success factors, outcomes and document them)
Find operating profit should be closest to : If the company sells 4,300 units, its operating profit should be closest to. Goodson Inc. produces and sells a single product. The company has provided
Investing in international markets : Bank Trust is a US bank. The bank has been lending abroad and borrowing in the US markets, thus the bank is exposed to foreign exchange risk.
What is the proper cash flow amount : What is the proper cash flow amount to use the initial investment in fixed assets when evaluation this project? Why?
Prepare the lease schedules for xyz ltd : Prepare the journal entries in the records of XYZ Ltd only for the year ended 30 June 2020. Prepare the lease schedules for XYZ Ltd.
Question on asian financial crisis : Richardson, D 1998, 'Asian Financial Crisis', Current Issues Briefs 1997-1998, Parliament of Australia.
What are the risks and benefits of going public : According to the author of the article titled "To Sink or Swim When Floating Stock":
Which the opportunity cost of making an investment is : Which the opportunity cost of making an investment is? the cost of forgoing a benefit from an alternative investment. / the initial cash outlay of investment.
Need for revised national and international reforms : In their article "The Libor Scandal: A Need for Revised National and International Reforms", Girasa and Kraus (2014), describe the events surrounding

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