On January 1, Harbor (lessee) signs a five-year lease for equipment that is accounted for as...
On January 1, Harbor (lessee) signs a five-year lease for
equipment that is accounted for as a finance lease. The lease
requires five $22,000 lease payments (the first at the beginning of
the lease and the remaining four at December 31 of years 1, 2, 3,
and 4), and the present value of the five annual lease payments is
$93,274, based on a 9% interest rate. 1. Prepare the January 1
journal entry Harbor records at inception of the lease...
On January 1, Harbor (lessee) signs a five-year lease for equipment that is accounted for as a finance lease. The lease requires five $28,000 lease payments (the first at the beginning of the lease and the remaining four at December 31 of years 1, 2, 3, and 4), and the present value of the five annual lease payments is $125,023, based on a 6% interest rate. 1. Prepare the January 1 journal entry Harbor records at inception of the lease...
Harbor (lessee) signs a five-year capital lease for office equipment with a $10,000 annual lease payment The present value of the five annual lease payments is $41,000, based on a 7% interest rate. 1. Prepare the journal entry Harbor will record at inception of the lease. 2. If the leased asset has a five-year useful life with no salvage value, prepare the journal entry Harbor will record each year to recognize depreciation expense related to the leased asset.
Problem 14-11AC On January 1, Rogers (lessee) signs a three-year lease for machinery that is accounted for as a finance lease. The lease requires three S18,000 lease payments (the first at the beginning of the lease and the remaining two at December 31 of Year 1 and Year 2). The present value of the three annual lease payments is $51,000, using a 6.003 % interest rate. The lease payment schedule follows. Accounting for finance lease C3 Payments (A) (в) Debi...
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Connect Homework - Chapter 10 Saved Help Save & Exit Submit Exercise 10-21C Accounting for finance lease LO C3 On January 1, Harbor (lessee) signs a five-year lease for equipment that is accounted for as a finance lease. The lease requires five $36,000 lease payments (the first at the beginning of the lease and the remaining four at December 31 of years 1, 2,...
Journal Entries for a Capital Lease-Lessee On January 1, the lessee company signed an operating lease contract. The lease contract calls for $3,000 payments at the end of each year for 10 years. The rate implicit in the lease is 10%. Assume that the lease is to be accounted for as a capital lease. Also assume that the leased asset is to be amortized over the 12-year asset life rather than the 10-year lease term. 1. Make the journal entries...
Lessor Sales Company and Lessee Manufacturing Company agreed to a noncancelable lease. The following in- formation is available to both entities regarding the lease terms and the leased asset. I. Lessor's cost of the leased asset was $30,000. The asset was new at the inception of the lease term. 2. Lease term is three years starting January 1,2020 3. Estimated useful life of the leased asset is six years. Estimated residual value at end of six years is zero. 4....
3. ABC Company, as lessee, enters into a lease agreement on
January 1, 2018, for equipment. The following data are relevant to
the lease agreement:
1. The term of the noncancelable lease is 4 years, with no
renewal option. Payments of $978,446 are due on January 1of each
year.
2. The fair value of the equipment on January 1, 2018 is
$3,500,000. The equipment has an economic life of 6 years with no
salvage value.
3. ABC Company depreciates similar...
Required 1
Journal entry 1 - Record lease by lessee.
Journal entry 2 - Record the cash payment January 1, 2021
Journal entry 3 -Record the cash payment December 31, 2021
Journal entry 4 -Record amortization of the right-of-use asset
on December 31, 2021
Required 2
Journal entry 1 - Record lease by lessor.
Journal entry 2 - Record the cash received (include maintenance
fee accrual)
Journal entry 3 -Record cash received by lessor
On January 1, 2021, NRC Credit...
On January 1, 2021, Allied Industries leased a high-performance conveyer to Karrier Company for a four-year period ending December 31, 2024, at which time possession of the leased asset will revert back to Allied. The equipment cost Allied $956,000 and has an expected useful life of five years. Allied expects the residual value at December 31, 2024, will be $300,000. Negotiations led to the lessee guaranteeing a $340,000 residual value. (FV of $1, PV of $1, FVA of $1, PVA...