Leased assets have an expected life of 5 years Depreciation is straight line Annual lease payment is $1,400 Interest rate is 12% 3) Find the total expense in Year 1 if exhibit refers to an Operating Lease 4) Find the total expensee in Year 1 if exhibit refers to a Capital Lease
Q: Using the data given below, compute for the total amount of items that meet the definition of financ...
A: A financial liability is a liability where there is a contractual obligation to pay/deliver cash or ...
Q: Ir. Segundo Primero died. H nildren, Pedro and Juan. Th roperty in favor of their two onor's tax?
A: Donors tax refers to the percentile form of charge imposed on any sort of gift or donation received.
Q: In 2021, AAA made the mistake of not amortizing the Premium in Bonds Payable account. Indicate the e...
A: While issuing bonds for raising funds; market yield is analyzed and when the coupon rate provided on...
Q: Amistoso is personally solvent, Galicia is personally insolvent, and Cruz becomes insolvent after in...
A: At the time of liquidation, the assets are sold and the liabilities are settled and the remaining ca...
Q: iscuss under what condition it would be appropriate to use a process costing system
A: Solution Concept Process costing system Process costing is a system of costing where the cost of is ...
Q: Aug. 1. Purchased office supplies on account, $1,760
A: Office supplies include consumables as well as equipment that are often used in workplaces by corpor...
Q: Compute for total assets if the owner's initial contribution for opening a business is P150,000. Thr...
A: ASSETS create economic benefit for the firm. When benefit is for a longer period of time , the asse...
Q: TRUE OR FALSE? In computing for the comprehensive income, the net remeasurement gain on defined ben...
A: Other Comprehensive income is added to Net income to arrive at Comprehensive Income. Comprehensive I...
Q: Farrow Company reports the following annual results. Contribution Margin Income Statement Sales (300...
A: The question is related to the Decision Making. Incremental cost are relevant for decision making.
Q: eased assets have an expected life of 5 years Depreciation is straight line Annual leasee payment ...
A: Solution Given Life (n) 5 years Annual lease payment (pmt) 1400 Nature of annuity ...
Q: D. 11,000 units are produced? Total variable costs $ 572,000 For E. and F., what is the total manufa...
A: * As per Bartleby policy, if question contains multiple subparts then answer first three only.
Q: Gibson Chicken Corporation processes and packages chicken for grocery stores. It purchases chickens ...
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question...
Q: or office space 2,400,000 Officers' salaries 3,000,000 Insurance 1,700,000 Sales representative s...
A: selling expenses are those expenses that are to be incurred by the departments of sales of an organi...
Q: Cleaner’s, Inc., is switching to paying employees every 2 weeks rather than weekly and will therefor...
A: Weekly Wages: Weekday Wage denotes the amount of remuneration supplied by the Company on a weekly ba...
Q: Diane Company has the following details for March. Cost of Direct Material used in production P31,00...
A: Prime cost means the addition of direct material and direct labor and other direct expenses. Manufac...
Q: Answers: 1. Purchases, 2. Beginning inventory, Ending inventory, ; Cost of goods sold,
A: Solution Formula used Goods available for sale =beginning inventory + purchases Cost ...
Q: Calculate the Workers' Compensation premium owing for an employer in Ontario with assessable earning...
A: The worker's compensation premium is the premium paid by the employer to insure the employee is case...
Q: The accountant at Fidel Trading has received the November 2010 bank statement. She immediately inves...
A: Bank reconciliation statement is prepared with a view to reconcile the cash balances as per bank rec...
Q: Mama company acquired 75% of the outstanding shares of Finance Company for P900,000. Book value of P...
A: Consolidation- The consolidated financial statement, which represents the financial status of both a...
Q: Campbell Bicycle Manufacturing Company currently produces the handlebars used in manufacturing its b...
A: The relevant cost per unit has been made as follows: Relevant cost per unit=Material per unit+Labor ...
Q: Senangin Corporation uses a job-order costing system and applies overhead on the basis of direct lab...
A: Prime cost means the addition of direct material and direct labor and other direct expenses. Manufac...
Q: Data Recovery Services (DRS) specializesS in data recovery from crasned nard drives. The price charg...
A: The service revenue is the revenue earned by providing services to its customers. Any discount or al...
Q: How much can Candlewood deduct as organizational expenses? As startup expenses? The LLC may deduct $...
A: A Startup is a small business in the infant stage. For starting a business various types of expendit...
Q: Your rich uncle named you beneficiary of his life insurance policy. The insurance company gives you ...
A: Amount today = 100,000 Annual payment = P12,000 Period = 12 Years
Q: The Trial Balance of PAG Enterprises, a dealer in HR Software, as at 31st December, 2021. GHS G...
A: A trial balance is a backbone of accounting as it includes a list of all general ledger account. It ...
Q: How many units must be in ending inventory if beginning inventory was 15,000 units, 58,000 units wer...
A: Beginning inventory 15000 Add: Units started 58000 Units to account for 73000 Less: Units comp...
Q: ompany produces a single product. They have recently received the results of a market survey that in...
A: In Marginal Costing we get contribution margin by deduct...
Q: The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a rac...
A: Financial advantage/disadvantage refers to the incremental increase or decrease which comes as a res...
Q: $6,000 $1,500 $1,200
A: a)The effect of the scholarship on Sally's gross income is given as,
Q: A resident corporation has the following data on income and expenses in 2018: Gross sal...
A: In this question, we have to find out the taxable income using the itemized deduction.
Q: Exercise 12-12 (AlgO) Indirect: Preparing statement of cash flows [The following information applies...
A: The Cashflow Statement is one of the important statements prepared by business organizations. It dis...
Q: Prepare a selling and administrative expense budget for the year.
A:
Q: deposits P1,000,000 ompounded annually, but the Philippine Tax Code mposes 20% tax payment from such...
A: solution Given Amount deposited 1000000 Rate of interest 6% Compounding Annually ...
Q: Beto Company pays $3.50 per unit to buy a part for one of the products it manufactures. With excess ...
A: Making or buy analysis deciding if to manufacture the product in-house or to purchase it from a thir...
Q: Beginning inventory, purchases, and sales for Item Copper are as follows: Mar. 1 Inventory 450 units...
A: Lets understand the basics. In FIFO basis, company assumes that goods comes first in the inventory a...
Q: 1. For the Ski department only, prepare a departmental income statement. 2. & 3. For the Ski departm...
A:
Q: 1)Find the forecast for 2012 using the time series trend method. Period Demand 2007 200 2008 150 200...
A: Answer 1. Time series trend method:- Time series analysis basically refers to a subset of particula...
Q: The inventory sheets as at 31/12/2021 put the value of inventory at GHS129,500. Allowance for doubtf...
A: Statement of financial Position as at 31st December, 2021 Liabilities Amount Assets Amou...
Q: Rent, building 49,000 Rea pute the predetermined overhead rate for the year. pare a schedule of cost...
A: Cost of goods sold The Calculation of cost of goods sold include beginning balance of raw material p...
Q: Beginning inventory, purchases, and sales for Item Copper are as follows: Mar. 1 Inventory 450 units...
A: Solution Cost of good sold = sales - gross profit.
Q: On January 1, 2018, Apple Company sold delivery equipment costing P1,000,000 with accumulated deprec...
A: Note means an instrument acknowledging as debt due from one party to another party. It carry defined...
Q: Tom loves cooking and after attending culinary school, he decided to start his own eatery in downtow...
A: Income statement: It is also known as profit and loss statement which shows the revenues, expenses, ...
Q: On February 15, 2022, CHAS received notice that a client may sue company for $10 million. The lawsui...
A: A contingent liability seems to be a possible responsibility that might or might not materialize bas...
Q: Determine the total employee withholdings
A:
Q: Jarvie loves to bike. In fact, he has always turned down better-paying jobs to work in bicycle shops...
A: Taxable income refers to the any individual’s or organisation’s income that is used to calculate tax...
Q: he following information, based on the 12/31/2021 Annual Report to Shareholders of Krafty Foods ($ i...
A: Krafty Foods Balance Sheet December'31, 2021 Assets Current Assets: (Millions) (Millions) ...
Q: On January 1, 2020, Blue Company purchased P500,000 8% bonds for P475,126 (including broker's commis...
A: Bonds are priced by discounting future cash flows. Future cash flows include coupons and par value o...
Q: Following are the financial statements of AB Ltd. for 2019. Balance sheet (S in millions) Income sta...
A: As per our guidelines, we are allowed to answer first 3 sub-parts, Kindly ask the remaining parts as...
Q: January 10 Received cash dividend at P10 per share. 20,000 shares@P100 30,000 shares @P120 2,000,000...
A: Introduction:- Shares are a type of equity ownership unit in a company. Shares exist as a financial ...
Q: ng P50,000 with three years useful life, no salvage value at the en the following cash inflows after...
A: Discounted Payback Period is a type of capital budgeting method that determines the payback period ...
Exhibit
Leased assets have an expected life of 5 years
Annual lease payment is $1,400
Interest rate is 12%
3) Find the total expense in Year 1 if exhibit refers to an Operating Lease
4) Find the total expensee in Year 1 if exhibit refers to a Capital Lease
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
- Exhibit Leased assets have an expected life of 5 years Depreciation is straight line Annual leasee payment is $1,400 Interest rate is 12% 1) Find the present value of the stream of leease payments in Exhibit. This is the Beginning-Year LiabilityPROBLEM 3: Lease arrangement with GUARANTEED Residual ValueLazy Company leased an equipment with useful life of 6 years on January 1, 2020 for period of 5 years with fixed annual rental ofP600,000 which is to be paid at the end of each year. The lease contract provides that the lessee has guaranteed a P100,000 residualvalue of the leased asset. The implicit interest rate in the lease is 10%. REQUIRED: Prepare table of amortization and journal entriesfor the entire lease term.Exhibit Leased assets have an expected life of 5 years Depreciation is straight line Annual leasee payment is $1,400 Interest rate is 12% Find the depreciation of an asset with an expected life of 5 years and a value equal to the present value of the lease payments in Exhibit.
- How much is the cost of the right of use asset at the inception of the lease? (All required entries are to be written in the columnar worksheet together with the computations and the computation of the right of use asset that is written in the google form. Lease term 10 years Annual rental payable at the end of each term P240,000 Estimated life of machine 12 years Implicit interest rate 10% Present value of an annuity of P1 for 10 period at 10% 6.145 Present value of 1 at 10% for 10 periods 0.386 Unguaranteed residual value 150,000 Payment to lessor to obtain a long term lease 30,000 Annual maintenance cost…See attached picture 1. Prepare a 10-year lease amortization schedule 2. Prepare all of the lessor's journal entries for the first yearJohn Limited leses an asset from Smith Limited. The lease agreement has the following terms: lease term is 3 years estimated economic life of the leased asset is 6 years 3 x annual rental payments of $24 000 each payment is one year in arrears İncluded in the amount of annual rental payments is an amount of $1 000 to cover repairs and maintenance of the leased asset residual value at the end of the lease term is not guaranteed by the lessee John Ltd incurs initial direct costs of $500 interest rate implicit in the lease is 7% At the commencement of the lease, the amount of lease liability would be measured as: Group of answer choices $60 359. $62 983 $60 859 $64 584
- O e. $300,000 Jestion 3 For an operating lease, which statement is TRUE? ot yet swered Select one: ints out of O a. The Right of Use asset amortization amount will decrease each year. O b. Annual Lease Expense will be the amortization of the Right of Use asset less that year's interest expense. Flag question Oc. The recorded Lease Expense amount will be the same each year. O d. The annual amortization of the Right of Use asset will be debited to Amortization Expense each year. O e. To compute the cost of the Right of Use asset, the lessee will use the incremental rate, if known. estion 4 Indicate the type of Deferred Tax account created by Unearned Revenues and Accrued Revenues, respectively: yet wered Select one: nts out of O a. Asset, Asset O b. Liability, Asset O c.Asset, Liability O d. Liability, Liability Flag question stion 5 Which of the following requires intraperiod tax allocation? yet wered Select one: nts out of O a. Discontinued Operations Loss O b. Estimated Warranty…PROBLEM 4: Lease arrangement with Guaranteed Residual Value and annual fixed lease payment is paid at the beginning of each year, with DIRECT COST and LEASE INCENTIVE Lazy Company leased an equipment with useful life of 6 years on January 1, 2020 for period of 5 years with fixed annual rental of P600,000 which is to be paid in advance at the beginning of each year. The lease contract provides that the lessee has guaranteed a P100,000 residual value of the leased asset and a lease incentive P80,000. Initial direct cost incurred and paid by the lessee amounted to P200,000. The implicit interest rate in the lease is 10%. REQUIRED: Prepare table of amortization and journal entries for the entire lease term.Each of the four independent situations below describes a sales-type lease in which annual lease payments of $18,000 are payable at the beginning of each year. Each is a finance lease for the lessee. EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $) (Use oppropriate foctor(s) from the tables provided.) Situation -2 4 Lease term (years) Asset's useful life (years) Lessor's implicit rate (known by lessee) Residual value: 15 10% 10% 10% 10% Guaranteed by lessee Unguaranteed Purchase option: After (years) Exercise price Reasonably certain? $7,200 $3,600 $3,600 $7, 200 4. $8, 600 $ 2,600 none n/a n/a $4,600 no no yes Determine the following amounts at the beginning of the lease: (Round your final answers to nearest whole dollar.) Situation A The lessor's 1 Total lease payments 2 Gross investment in the lease 3 Net investment in the lease B The lessee's 4 Total lease payments 5. Right-of-use asset 6 Lease liability
- Use the information in RE20-3. Prepare the journal entries that Richie Company (the lessor) would make in the first year of the lease assuming the lease is classified as a sales-type lease. Assume that the lessee is required to make payments on December 31 each year. Also assume that Richie had purchased the equipment at a cost of 200,000.Lease facts: Date of lease – 6/1/19 Term – 3 years (expires 6/1/22) Semi-annual lease payments of $100,000 every 6/1 and 12/1 Lessee’s incremental borrowing rate – 6% Lessor’s implicit rate of return – 5% (NOT known to lessee) Lessor’s cost of asset leased - $250,000 Guaranteed residual value - $70,000 (lessee believes fair value of the asset at the end of the lease will be greater than $70,000). Lessee and Lessor both have a December 31st Requirements: Assume the lease is treated as a finance lease: Determine the fair value of the lease from the lessor’s perspective Prepare the lessor’s amortization table for this lease Prepare all of the lessor’s required journal entries for 2019 and 2020Date of entering lease 1 July 2019 Duration of lease 5 years Life of asset 6 years Unguaranteed residual value $40,000 Lease payments inception (at the start) $60,000 Annual payments (5) $65,000 Implied rate 11.0 % Required: Determine the Fair Value (rounded off) of the leased asset.