Mid-South Auto Leasing leases vehicles to consumers. The
attraction to customers is that the company can offer competitive
prices due to volume buying and requires an interest rate implicit
in the lease that is one percent below alternate methods of
financing. On September 30, 2021, the company leased a delivery
truck to a local florist, Anything Grows. The fiscal year for both
companies ends December 31.
The lease agreement specified quarterly payments of $3,000
beginning September 30, 2021, the beginning of the lease, and each
quarter (December 31, March 31, and June 30) through June 30, 2024
(three-year lease term). The florist had the option to purchase the
truck on September 29, 2023, for $6,000 when it was expected to
have a residual value of $10,000. The estimated useful life of the
truck is four years. Mid-South Auto Leasing’s quarterly interest
rate for determining payments was 3% (approximately 12% annually).
Mid-South paid $25,000 for the truck. Both companies use
straight-line depreciation or amortization. Anything Grows’
incremental interest rate is 12%.
Prepare the appropriate entries for Anything Grows and Mid-South Auto Leasing on December 31, 2021.
Mid-South Auto Leasing leases vehicles to consumers. The attraction to customers is that the company can...
Mid-South Auto Leasing leases vehicles to consumers. The attraction to customers is that the company can offer competitive prices due to volume buying and requires an interest rate implicit in the lease that is one percent below alternate methods of financing. On September 30, 2021, the company leased a delivery truck to a local florist, Anything Grows. The fiscal year for both companies ends December 31. The lease agreement specified quarterly payments of $3,000 beginning September 30, 2021, the beginning...
Mid-South Auto Leasing leases vehicles to consumers. The attraction to customers is that the company can offer competitive prices due to volume buying and requires an interest rate implicit in the lease that is one percent below alternate methods of financing. On September 30, 2018, the company leased a delivery truck to a local florist, Anything Grows. The lease agreement specified quarterly payments of $5,000 beginning September 30, 2018, the beginning of the lease, and each quarter (December 31, March...
Mid-South Auto Leasing leases vehicles to consumers. The attraction to customers is that the company can offer competitive prices due to volume buying and requires an interest rate implicit in the lease that is one percent below alternate methods of financing. On September 30, 2021, the company leased a delivery truck to a local florist, Anything Grows. The fiscal year for both companies ends December 31. The lease agreement specified quarterly payments of $3,000 beginning September 30, 2021, the beginning...
Mid-South Auto Leasing leases vehicles to consumers. The attraction to customers is that the company can offer competitive prices due to volume buying and requires an interest rate implicit in the lease that is one percent below alternate methods of financing. On September 30, 2021, the company leased a delivery truck to a local florist, Anything Grows. The fiscal year for both companies ends December 31. The lease agreement specified quarterly payments of $7,000 beginning September 30, 2021, the beginning...
Mid-South Auto Leasing leases vehicles to consumers. The attraction to customers is that the company can offer competitive prices due to volume buying and requires an interest rate implicit in the lease that is one percent below alternate methods of financing. On September 30, 2021, the company leased a delivery truck to a local florist, Anything Grows. The fiscal year for both companies ends December 31. The lease agreement specified quarterly payments of $7,500 beginning September 30, 2021, the beginning...
Mid-South Auto Leasing leases vehicles to consumers. The attraction to customers is that the company can offer competitive prices due to volume buying and requires an interest rate implicit in the lease that is one percent below alternate methods of financing. On September 30, 2021, the company leased a delivery truck to a local florist, Anything Grows. The fiscal year for both companies ends December 31. The lease agreement specified quarterly payments of $3,000 beginning September 30, 2021, the beginning...
Mid-South Auto Leasing leases vehicles to consumers. The attraction to customers is that the company can offer competitive prices due to volume buying and requires an interest rate implicit in the lease that is one percent below alternate methods of financing. On September 30, 2021, the company leased a delivery truck to a local florist, Anything Grows. The fiscal year for both companies ends December 31. The lease agreement specified quarterly payments of $4,500 beginning September 30, 2021, the beginning...
Mid-South Auto Leasing leases vehicles to consumers. The attraction to customers is that the company can offer competitive prices due to volume buying and requires an interest rate implicit in the lease that is one percent below alternate methods of financing. On September 30, 2021, the company leased a delivery truck to a local florist, Anything Grows. The fiscal year for both companies ends December 31. Help with Required #5 Please. Mid-South Auto Leasing leases vehicles to consumers. The attraction...
Mid-South Auto Leasing leases vehicles to consumers. The attraction to customers is that the company can offer competitive prices due to volume buying and requires an interest rate implicit in the lease that is one percent below alternate methods of financing. On September 30, 2021, the company leased a delivery truck to a local florist, Anything Grows. The fiscal year for both companies ends December 31. The lease agreement specified quarterly payments of $3,000 beginning September 30, 2021, the beginning...
Mid-South Auto Leasing leases vehicles to consumers. The attraction to customers is that the company can offer competitive prices due to volume buying and requires an interest rate implicit in the lease that is one percent below alternate methods of financing. On September 30, 2021, the company leased a delivery truck to a local florist, Anything Grows. The fiscal year for both companies ends December 31. The lease agreement specified quarterly payments of $3,500 beginning September 30, 2021, the beginning...