User Account

All Pages

What is the amount of interest income

Assignment Help Financial Accounting
Reference no: EM132892637

Question - AFA Ltd. is a lessor that reports under ASPE and has a December 31, 20X1 year-end. Commencing January 1, 20X1, the company has agreed to lease equipment to a customer that has a fair value of $76,000 and a carrying amount of $61,000. The lease term is for 3 years with payments of $6,600 due on the first day of each quarter. The implicit interest rate is 8% and the equipment has an unguaranteed residual value of $6,096.

Required -

1: What is the amount of interest income that the company will record in the first quarter of 20X1?

2: What is the amount of sales revenue that the company will record at the inception of the lease?

Reference no: EM132892637

Questions Cloud

Determine the annual cost of the bulldozer : Question - The purchasing price of the second-hand bulldozer is $150,000. Determine the annual cost of the bulldozer at 6% per year
Tannenbaum and schmidt leadership continuum model : Focusing on the seven styles within the Tannenbaum and Schmidt's Leadership Continuum Model discussed in Exhibit 4.5, complete the following two-part question.
Difference between core and support processes : 1.Which of the following is a difference between core and support processes?
A critical review of the information technology : A critical review of the Information Technology (IT), Information Systems (IS) of the chosen business and An analysis of how business information
What is the amount of interest income : What is the amount of interest income that the company will record in the first quarter of 20X1
Outline the key themes from the walker review : Following an incident with a professional league in a different spoil, LVA and Country A are concerned about the reputation of their spoil.
Determine the beginning retained earnings is debited : In the consolidation eliminating entries for 2021, determine the beginning retained earnings is debited
Banks start image repair over financial crisis : In the first months of 2010, U.S. Banks have launched a campaign that aims to win back trust of their consumers and repair their battered images.
Calculate the current ratio and acid test : For both companies calculate the current ratio, acid test, working capital, accounts receivable turnover, inventory turnover, and profit margin

Reviews

Write a Review

Financial Accounting Questions & Answers

  Show the amount of gain or loss from the sale

Show the amount of gain or loss from the sale of the asset under each of the depreciation methods. Double declining units of production

  Compute the beta coefficient for the security

Compute the Beta Coefficient for the following security (J), using first, regression analysis to find the slope of the Characteristic Line

  Compute the receivable turnover ratio rounded

Compute the receivable turnover ratio rounded to one decimal place based on the following data Beginning accounts receivable

  About the dividends per share

Michelangelo Inc., a software development firm, has stock outstanding as follows: 30,000 shares of cumulative 4%, preferred stock of $25 par, and 38,000 shares of $75 par common. During its first four years of operations, the following amounts were d..

  Explain the gasb reporting requirements

Explain the GASB reporting requirements related to fair value. How do these requirements differ from reporting requirements for corporate entities?

  What was the issue price of the bonds

What was the issue price of the bonds? On January 1, Broker Corp. issued $2,600,000 par value 8%, 8-year bonds which pay interest

  Journal entries to record the treasury stock transactions

Clemson Company had the following stockholders equity as of January 1, 2014. Common Stock, $5 par value, 28,200 shares issued - $141,000. Prepare the journal entries to record the treasury stock transactions in 2014, assuming Clemson uses the cost me..

  What is the dollar amount of income

If London needs to have a total return of 0.23 during the year, then what is the dollar amount of income that she needed to have to reach her objective?

  What conclude about maintenance expense

You correctly competed the coefficient of determination to be .96. What can you conclude about Maintenance Expense and Direct Labour costs?

  How much depreciation expense should the redbirds take

The Rhode Island Redbirds organization, How much depreciation expense should the Redbirds take in the first year, if straight-line is being used?

  Calculate amount of dividends in arrears on zeta preferred

Calculate amount of dividends in arrears on Zeta’s preferred stock and briefly explain how this amount will be known to investors and creditors who may use the company’s fin ancial statements.

  Write a memo to towry outlining your suggestions

Tse does not want to give Towry this budget without making constructive suggestions for steps Towry could take to improve expected performance. Write a memo to Towry outlining your suggestions.

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: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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