how come there is a eight-year
lease from 2021 to 2027?
Homework Answers
Answer to the question part no. 2. :-
| DATE | PARTICULARS | DEBIT | CREDIT |
| 01 JAN 2021 | LEASE PAYABLE | 110000 | |
| CASH | 110000 | ||
| DATE | PARTICULARS | DEBIT | CREDIT |
| 01 JAN 2021 | CASH | 110000 | |
| LEASE RECEIVABLE | 110000 | ||
| 01 JAN 2021 | DEPRECIATION A/C | 80690.75 | |
| EQUIPMENT(PLANE) | 80690.75 | ||
| 01 JAN 2021 | SELLING EXPENSES | 18099 | |
| CASH | 18099 | ||
Answer to the question part no. 5. :-
| DATE | PARTICULARS | DEBIT | CREDIT |
| 31 DEC 2027 | LEASE PAYABLE | 110000 | |
| CASH | 110000 | ||
| DATE | PARTICULARS | DEBIT | CREDIT |
| 31 DEC 2027 | CASH | 110000 | |
| LEASE RECEIVABLE | 110000 | ||
| 31 DEC 2027 | DEPRECIATION A/C | 80690.75 | |
| EQUIPMENT(PLANE) | 80690.75 | ||
Answer to the question part no. 4. :-
| DATE | PARTICULARS | DEBIT | CREDIT |
| 31 DEC 2021 | LEASE PAYABLE | 110000 | |
| CASH | 110000 | ||
| DATE | PARTICULARS | DEBIT | CREDIT |
| 31 DEC 2021 | CASH | 110000 | |
| LEASE RECEIVABLE | 110000 | ||
| 31 DEC 2021 | DEPRECIATION A/C | 80690.75 | |
| EQUIPMENT(PLANE) | 80690.75 | ||
| 31 DEC 2021 | SELLING EXPENSES | 18099 | |
| CASH | 18099 | ||
Add Answer to:
how come there is a eight-year
lease from 2021 to 2027?
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Bidwell Leasing purchased a single-engine plane for its fair value of $645,526 and leased it to Red Baron Flying Club on January 1, 2021.(FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Terms of the lease agreement and related facts were Eight annual payments of $110,000 beginning January 1, 2021, the beginning of the lease, and at each December 31 through 2027. Red...
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Bidwell Leasing purchased a single-engine plane for $400,000 and leased it to Red Baron Flying Club...
Bidwell Leasing purchased a single-engine plane for $400,000 and leased it to Red Baron Flying Club for its fair value of $645,526 on January 1, 2016.Terms of the lease agreement and related facts were:a. Eight annual payments of $110,000 beginning January 1, 2016, the inception of the lease, and at each December 31 through 2022. Bidwell Leasing’s implicit interest rate was 10%. The estimated useful life of the plane is eight years. Payments were calculated as follows:b. Red Baron’s incremental...
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Bidwell Leasing purchased a single-engine plane for $470,000 and leased it to Red Baron Flying Club for its fair value of $828,269 on January 1, 2018. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Terms of the lease agreement and related facts were: Eight annual payments of $145,000 beginning January 1, 2018, the inception of the lease, and at each December 31...
On January 1, 2021, Robertson Construction leased several items of equipment under a two-year operating lease...
On January 1, 2021, Robertson Construction leased several items of equipment under a two-year operating lease agreement from Jamison Leasing, which routinely finances equipment for other firms at an annual interest rate of 5%. The contract calls for four rent payments of $57,000 each, payable semiannually on June 30 and December 31 each year. The equipment was acquired by Jamison Leasing at a cost of $377,000 and was expected to have a useful life of five years with no residual...
Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2021. Edison purchased the...
Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2021. Edison purchased the equipment from International Machines at a cost of $123,651. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Related Information: Lease term 2 years (8 quarterly periods) $16,000 at the beginning of each Quarterly rental payments period Economic life of asset 2 years Fair value of asset...
On January 1, 2021, Robertson Construction leased several items of equipment under a two-year operating lease...
On January 1, 2021, Robertson Construction leased several items of equipment under a two-year operating lease agreement from Jamison Leasing, which routinely finances equipment for other firms at an annual interest rate of 5%. The contract calls for four rent payments of $48,000 each, payable semiannually on June 30 and December 31 each year. The equipment was acquired by Jamison Leasing at a cost of $368,000 and was expected to have a useful life of five years with no residual...
Shelf Leasing purchased a machine and leased it to ITA, Inc. on January 1, 2021. $32,629...
Shelf Leasing purchased a machine and leased it to ITA, Inc. on January 1, 2021. $32,629 at the beginning of each quarter. 5 years (20 quarters) Lease description: Quarterly rental payments Lease term No residual value No Bargain Purchase Option Economic life of machine Implicit annual interest rate and lessee's annual incremental borrowing rate Fair value of asset Cost of the Asset to Shelf 5 years 12% $500,000 $300,000 The lease is noncancelable, collectibility of the rental payments is reasonably...
The lease agreement specified quarterly payments of $3,500 beginning September 30, 2021, the beginning of the...
The lease agreement specified quarterly payments of $3,500 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 $7,000 when it was expected to have a residual value of $16,000. The estimated useful life of the truck is four years. Mid-South Auto Leasing's quarterly interest rate for determining payments was...
Bidwell Leasing purchased a single-engine plane for $600,000 and leased it to Red Baron Flying Club for its fair value of $742,586 on January 1, 2021. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Terms of the lease agreement and related facts were: a. Eight annual payments of $130,000 beginning January 1, 2021, the beginning of the lease, and at each December...
Bidwell Leasing purchased a single-engine plane for $400,000 and leased it to Red Baron Flying Club for its fair value of $645,526 on January 1, 2016.Terms of the lease agreement and related facts were:a. Eight annual payments of $110,000 beginning January 1, 2016, the inception of the lease, and at each December 31 through 2022. Bidwell Leasing’s implicit interest rate was 10%. The estimated useful life of the plane is eight years. Payments were calculated as follows:b. Red Baron’s incremental...
Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2021. Edison purchased the equipment from International Machines at a cost of $123,651. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Related Information: Lease term 2 years (8 quarterly periods) $16,000 at the beginning of each Quarterly rental payments period Economic life of asset 2 years Fair value of asset...
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Shelf Leasing purchased a machine and leased it to ITA, Inc. on January 1, 2021. $32,629 at the beginning of each quarter. 5 years (20 quarters) Lease description: Quarterly rental payments Lease term No residual value No Bargain Purchase Option Economic life of machine Implicit annual interest rate and lessee's annual incremental borrowing rate Fair value of asset Cost of the Asset to Shelf 5 years 12% $500,000 $300,000 The lease is noncancelable, collectibility of the rental payments is reasonably...
The lease agreement specified quarterly payments of $3,500 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 $7,000 when it was expected to have a residual value of $16,000. The estimated useful life of the truck is four years. Mid-South Auto Leasing's quarterly interest rate for determining payments was...
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