There is a problem with the last table.
1-1-17 | Right of Use asset a/c Dr | 34000 | |
To Lease Liability a/c | 34000 | ||
31-12-17 | Lease Liability a/c Dr | 1749 | |
Interest expense a/c Dr (or Finance Charge a/c) |
1700 | ||
To cash a/c | 3449 | ||
31-12-18 | Lease Liability a/c Dr | 1836 | |
Interest expense a/c Dr | 1613 | ||
To Cash a/c | 3449 |
Please comment in case of any doubt regarding the solution.
There is a problem with the last table. Exercise 21A-25 a-d (Part Level Submission) Giannis Corporation...
please answer b Exercise 21A-17 a-c (Part Level Submission) On January 1, 2017, Sage Hill Co. leased a building to Oriole Inc. The relevant information related to the lease is as follows. 1The lease arrangement is for 10 years. The building is expected to have a residual value at the end of the lease of $2,800,000 (unguaranteed). 2. The leased building has a cost of $3,300,000 and was purchased for cash on January 1, 2017. 3 The building is depreciated...
please help with the journal entries Exercise 21A-10 a-d (Part Level Submission) The following facts pertain to a non-cancelable lease agreement between Crane Leasing Company and Larkspur Company, a lessee. May 1, 201 Commencement date Annual lease payment due at the beginning of $15,138.16 each year, beginning with May 1, 2017 Bargain purchase option price at end of lease term $4,000 Lease term 5 years Economic life of leased equipment 10 years Lessor's cost $50,000 Fair value of asset at...
*Exercise 21A-6 a-b Sage Hill Leasing Company signs a lease agreement on January 1, 2017, to lease electronic equipment to Oriole Company. The term of the non-cancelable lease is 2 years, and payments are required at the end of each year. The following information relates to this agreement: 1. Oriole has the option to purchase the equipment for $22,500 upon termination of the lease. It is not reasonably certain that Oriole will exercise this option. 2. The equipment has a...
Exercise 17-3 (Part Level Submission) On January 1, 2017, Marin Company purchased 10% bonds having a maturity value of $220,000, for $237,567.22. The bonds provide the bondholders with a 8% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest receivable January 1 of each year. Ma discount or premium. The bonds are classified in the held-to-maturity category. (a) Your answer is correct. Prepare the journal entry at the date of the bond purchase. (Enter answers...
Exercise 21A-7 b-e Carla Vista Leasing Company leases a new machine to Sharrer Corporation. The machine has a cost of $65,000 and fair value of $94,500. Under the 3-year, non-cancelable contract, Sharrer will receive title to the machine at the end of the lease. The machine has a 3-year useful life and no residual value. The lease was signed on January 1, 2017. Carla Vista expects to earn an 8% return on its investment, and this implicit rate is known...
Exercise 21A-17 a-c (Part Level Submission) On January 1, 2017, Sage Hill Co. leased a building to Oriole Inc. The relevant information related to the lease is as follows. 1. The lease arrangement is for 10 years. The building is expected to have a residual value at the end of the lease of $2,800,000 (unguaranteed). 2. The leased building has a cost of $3,300,000 and was purchased for cash on January 1, 2017. 3. The building is depreciated on a...
Exercise 21A-17 a-c (Part Level Submission) On January 1, 2017, Sage Hill Co. leased a building to Oriole Inc. The relevant information related to the lease is as follows. 1. The lease arrangement is for 10 years. The building is expected to have a residual value at the end of the lease of $2,800,000 (unguaranteed). 2. The leased building has a cost of $3,300,000 and was purchased for cash on January 1, 2017. 3. The building is depreciated on a...
*Exercise 21A-12 a-f On January 1, 2017, Cullumber Company leased equipment to Flynn Corporation. The following information pertains to this lease: The term of the non-cancelable lease is 6 years. At the end of the lease term, Flynn has the option to purchase the equipment for $2,000, while the expected residual value at the end of the lease is $6,000. 2. Equal rental payments are due on January 1 of each year, beginning in 2017. 3. The fair value of...
Please help with finding the right account titles! Brief Exercise 21A-7 Your answer is partially correct. Try again. Windsor Corporation recorded a right-of-use asset for S240 300 as a result of a finance lease on December 31, 2016. Windsor's incremental borrowing rate is 13%, and the implicit rate of the lessor was not known at the commencement of the lease. Windsor made the first lease payment of $41,440 on on December 31, 2016. The lease requires 9 annual payments. The...
Exercise 21A-19 a-d Blue Corporation leased equipment to Larkspur, Inc. on January 1, 2017. The lease agreement called for annual rental payments of $1,381 at the beginning of each year of the 3-year lease. The equipment has an economic useful life of 7 years, a fair value of $10,000, a book value of $8,000, and Blue expects a residual value of $7,500 at the end of the lease term. Blue set the lease payments with the intent of earning a...