Reference no: EM132744511
Problem - Cuddly Ltd enters into an agreement with Regional Bank on 1 July 2019 to lease an item of equipment that produces teddy bears. The following details are available regarding the lease:
Lease term: 6 years;
Economic life of equipment: 8 years;
Lease payment on 30 June each year: $45,000;
Reimbursement of insurance by Cuddly Ltd to Regional Bank on 30 June each year (payment is additional to lease payment): $3,000;
Unguaranteed residual: $12,000.
Legal fees incurred by Cuddly Ltd on inception of the lease: $2,000
Interest rate implicit in the lease: 7%
The lessee intends to return the equipment at the end of the lease term.
Required -
1) Provide journal entry(s) by Cuddly Ltd on 1 July 2019.
2) Provide journal entry(s) by Cuddly Ltd on 30 June 2020.
3) Provide journal entry(s) by Regional Bank on 1 July 2019 assuming a finance lease.
|
Leader effectiveness depend primarily on traits or behaviors
: Does leader effectiveness depend primarily on traits or behaviors? How does power, conflict, and influence impact the success of leaders?
|
|
What is the ending inventory under the absorption costing
: ABS CBN began the year with no inventory, produced 12,000 units and sold 11,500 units. What is the ending inventory under the absorption costing?
|
|
Compute what is the depreciation charge
: Inclusive of inflation, the actual amount expected to be received on disposal was estimated at P900,000. What is the depreciation charge for 2013?
|
|
What amount should be reported as income tax expense
: Tax rates apply to the entire profit for the year. What amount should be reported as income tax expense in the interim FS for the half yr ended 6/30/2013?
|
|
Provide journal entry by Cuddly Ltd on July
: The lessee intends to return the equipment at the end of the lease term. Provide journal entry(s) by Cuddly Ltd on 1 July 2019
|
|
What amount should recognized in profit in respect of staff
: The terms and conditions of employment, What amount should be recognized in profit or loss in respect of the staff bonus for the half year ended 6/30/2013?
|
|
What amount of provision should charged in second quarters
: Sales for the second quarter amounted to 15,000,000. What amount of provision should be charged in the second quarters interim income statement?
|
|
Prepare the income statement ending with gross margin
: Prepare the income statement ending with gross margin. Compute the gross profit as a percentage of sales from this income statement
|
|
Analysis of the social-demographic-technological
: Analysis of the social/demographic, technological, economic, environmental/geographic, and political/legal/governmental segments to understand
|