Reference no: EM132720418
Question: Eye Deal Optometry leased vision-testing equipment from Insight Machines on January 1, 2021. Insight Machines manufactured the equipment at a cost of $370,000 and lists a cash selling price of $425,235. Appropriate adjusting entries are made quarterly. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
Required: 1. Prepare appropriate entries for Eye Deal to record the arrangement at its beginning, January 1, 2021, and on March 31, 2021.
1) Record the beginning of the lease for Eye Deal.
2) Record the lease payment made by Eye Deal on January 1, 2021.
3)Record the lease payment made by Eye Deal on March 31, 2021.
4) Record amortization of the right-of-use asset for Eye Deal.
2. Prepare appropriate entries for Insight Machines to record the arrangement at its beginning, January 1, 2021, and on March 31, 2021.
1) Record the beginning of the lease for Insight Machines.
2) Record the lease payment received by Insight Machines on January 1, 2021.
3) Record the lease payment received by Insight Machines on March 31, 2021.
Describe the importance of financial statements analysis
: Describe the importance of financial statements analysis, using the six steps of analysis. Identify two items from Microsoft's MD&A or Letter to Shareholders.
|
Determine the depreciation expense
: On January 1, 2017, Slade Inc. purchased a machine for $90,000. Slade depreciated the machine with the straight-line depreciation method over a useful life.
|
How much the investment would be worth today
: Tell us that a group of Dutch colonists purchased the island of Manhattan from Native American residents in 1626. Payment was made with wampum.
|
Compute for the issue price of the bonds
: On January 1, 20x1, an entity issues 14%, 3-year, P5,000,000 bonds at a price that reflects a yield rate of 8%. Compute for the issue price of the bonds.
|
Record the beginning of the lease for eye deal
: Eye Deal Optometry leased vision-testing equipment from Insight Machines on January 1, 2021. Insight Machines manufactured the equipment at a cost of $370,000.
|
Prepare the necessary journal entry
: Prepare the necessary journal entry for part b, if any, to correct the accounts as of January 1, 2019. Prepare the journal entry for part b if the error was.
|
Explain the concept of the laws of principals and agents
: Explain the concept of the laws of principals and agents and why it important for a financial services officer to comply with this.
|
How much is the gross estate of the decedent
: In the last will and testament, a decedent provided that the properties he leaves must not be sold or disposed of for ten years following his death.
|
Which would be considered cash earnings
: Following, are various types of income from employment; Group Life Insurance Coverage $80. Total those which would be considered cash earnings.
|