User Account

All Pages

What is the effective annual interest rate

Assignment Help Accounting Basics
Reference no: EM131005220

On January 1, 2011, National Insulation Corporation (NIC) leased office space under a capital lease. Lease payments are made annually. Title does not transfer to the lessee and there is no bargain purchase option. Portions of the lessee's lease amortization schedule appear below:

843_254-b-a-a-l--459-.png

Required:

1. What is NIC's lease liability at the inception of the lease (after the first payment)?

2. What amount would NIC record as a leased asset?

3. What is the lease term in years?

4. What is the asset's residual value expected at the end of the lease term?

5. How much of the residual value is guaranteed by the lessee?

6. What is the effective annual interest rate?

7. What is the total amount of minimum lease payments?

8. What is the total effective interest expense recorded over the term of the lease? 

Reference no: EM131005220

Questions Cloud

What are the governments fiscal policy options : What are the government's fiscal policy options for ending a severe recession? What are the short term and long term consequences of using fiscal policy for ending a server recession? What are the Monetary policy tools the Federal Reserve Board uses...
What uniform amount can you withdraw from the account : You have opened a retirement account that will pay 4% interest per year. You plan to deposit 8% of your annual salary into the account for 40 years before you retire. Your first year's salary is $48,000, and you expect your salary to grow 3.5% each y..
Discuss the effectiveness and the limitations of this model : Discuss the influence one component has on the others (e.g., what influence do emotions have on behaviors?). Discuss the effectiveness and the limitations of this model
What are the guidelines for improving perceptions : What is the most important thing to remember about perceptions when attempting effective communication? Why? What are the guidelines for improving perceptions and communication and why are they important
What is the effective annual interest rate : What is NIC's lease liability at the inception of the lease (after the first payment)? What is the asset's residual value expected at the end of the lease term?
Define intelligence and intelligence testing : Define intelligence and intelligence testing. Describe how intelligence testing is used as a means of assessing normal intelligence and targeting special needs children
Interest rate stimulus-inflation and money supply : The Federal Reserve Board under the direction of Janet Yellen is keeping interest rates at amazingly low levels. What are the benefits and consequences of taking on such action? Include in your answer issues as interest rate stimulus, inflation, mone..
Use the economic order quantity formula to work out : A film processing laboratory uses 37.5 liters of developer per week and is open for business 50 weeks in a year. Administrative and other costs of ordering a consignment of developer are $15 and it costs $10 to keep one liter of developer in stock fo..
Design the control circuit using a pla and d flip-flops : Assume that St remains 1and C does not change until the operation is completed.The control then remains in the stop state until St is changed back to o. Draw a block diagram of the system,which includes the shift registers, the counter, the c..

Reviews

Write a Review

Accounting Basics Questions & Answers

  Which method do you think is the most representative of

assume the colorado avalanche purchased new zamboni machine to scrape the ice off the rink between periods. the zamboni

  How effective do you think the 2-man rule is especially

how effective do you think the 2-man rule is especially when dealing with banks? we see it everyday across the country

  An insurance firm writes policies covering cruise vacation

an insurance firm writes policies covering cruise vacation. the probability that someone will file a claim on their

  Monthly compounding-annualizing a monthly rate

If you bought a $1,000 face value CD that matured in nine months, and which was advertised as paying 9% annual interest, compounded monthly, how much would you receive when you cashed in your CD at maturity?

  How much will you have to pay every two years

If the interest rate is 4% per year, how much will you have to pay every two years?

  A company can account for gains or losses from early

A company can account for gains or losses from early extinguishment of debt in three ways:

  Describe the advantages and disadvantages of a standard

1. define a standard cost and explain what constitutes the components of a standard cost.2. describe the advantages and

  Spahr company produces a part that is used in the

spahr company produces a part that is used in the manufacture of one of its products. the unit manufacturing costs of

  Flygt corporation sells one product its waterproof hiking

flygt corporation sells one product its waterproof hiking boot. it began operations in the current year and had an

  Calculate the approximate fixed cost component of tanners

tanner inc. has incurred the following overhead costs over a 6 week period week machine hours overhead cost 1 68 1190 2

  If the company uses the percentage of sales basis to

the december 31 2007 balance sheet of quayle company had accounts receivable of 500000 and a credit balance in

  Prepare journal entries to establish the fund on may 1 to

shawnee co. set up a petty cash fund for payments of small amounts problem 8-2a p8-2a shawnee co. set up a petty cash

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