Homework Answers
| Calculation of Present vaue of Minumum lease payments | |||
| Date | Payments | PV factor $ 6% | PV of Minmum lease payments |
| January 1,2019 | $ 44,875 | 1 | $ 44,875 |
| January 1,2020 | $ 44,875 | 0.94340 | $ 42,335 |
| January 1,2021 | $ 44,875 | 0.89000 | $ 39,939 |
| January 1,2022 | $ 44,875 | 0.83962 | $ 37,678 |
| January 1,2023 | $ 44,875 | 0.79209 | $ 35,545 |
| PV of MLP | $ 2,00,372 | ||
Amortization schedule:
| Date | Payment | Interest | Principle | Balance |
| January 1,2019 | $ 2,00,372 | |||
| January 1,2019 | $ 44,875 | $ - | $ 44,875 | $ 1,55,497 |
| January 1,2020 | $ 44,875 | $ 9,329.81 | $ 35,545 | $ 1,19,952 |
| January 1,2021 | $ 44,875 | $ 7,197.10 | $ 37,678 | $ 82,274 |
| January 1,2022 | $ 44,875 | $ 4,936.42 | $ 39,939 | $ 42,335 |
| January 1,2023 | $ 44,875 | $ 2,540.11 | $ 42,335 | $ 0 |
| Total | $ 2,24,375 | $ 24,003 | $ 2,00,372 |
Journal Entries:
| January 1,2019 | Right of use asset | $ 2,00,372 | |
| Lease Liability | $ 2,00,372 | ||
| (To record inception of lease) | |||
| January 1,2019 | Lease Liability | $ 44,875 | |
| Cash | $ 44,875 | ||
| (To record lease payment) | |||
| December 31,2019 | Interest expense | $ 9,330 | |
| Interest payable | $ 9,330 | ||
| (To record interest expense) | |||
| December 31,2019 | Amortization expense (200372/5) | $ 40,074 | |
| Right of use asset | $ 40,074 | ||
| (To record depreciation expense) |
Add Answer to:
Question 1 View Policies Current Attempt in Progress Marin Limited has signed a lease agreement with...
Culver Limited has signed a lease agreement with Lantus Corp. to lease equipment with an expected...
Culver Limited has signed a lease agreement with Lantus Corp. to lease equipment with an expected lifespan of eight years, no estimated salvage value, and a cost to Lantus, the lessor of $170,000. The terms of the lease are as follows: • The lease term begins on January 1, 2019, and runs for 5 years. • The lease requires payments of $37,396 at the beginning of each year starting January 1, 2019. • At the end of the lease term,...
On January 1, 2017, Marin Corporation signed a 5-year noncancelable lease for a machine. The terms...
On January 1, 2017, Marin Corporation signed a 5-year
noncancelable lease for a machine. The terms of the lease called
for Marin to make annual payments of $8,560 at the beginning of
each year, starting January 1, 2017. The machine has an estimated
useful life of 6 years and a $4,800 unguaranteed residual value.
The machine reverts back to the lessor at the end of the lease
term. Marin uses the straight-line method of depreciation for all
of its plant...
Marin Leasing Company signs a lease agreement on January 1, 2017, to lease electronic equipment to...
Marin Leasing Company signs a lease agreement on January 1,
2017, to lease electronic equipment to Cullumber 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.
Cullumber has the option to purchase the equipment for $27,000
upon termination of the lease. It is not reasonably certain that
Cullumber will exercise this option.
2.
The equipment has a cost of $340,000 and...
Laura Leasing Company signs an agreement on January 1, 2017, to lease equipment to Marin Company. The following information relates to this agreement. 1. The term of the noncancelable lease is 5...
Laura Leasing Company signs an agreement on January 1, 2017, to lease equipment to Marin Company. The following information relates to this agreement. 1. The term of the noncancelable lease is 5 years with no renewal option. The equipment has arn estimated economic life of 5 years. 2. The fair value of the asset at January 1, 2017, is $82,500. The asset will revert to the lessor at the end of the lease term, at which time the asset is...
Question 6 Ludwick Steel Company, as lessee, signed a lease agreement for equipment for 5 years,...
Question 6 Ludwick Steel Company, as lessee, signed a lease agreement for equipment for 5 years, beginning December 31, 2020. Annual rental payments of $40,000 are to be made at the beginning of each lease year (December 31). The interest rate used by the lessor in setting the payment schedule is 6%; Ludwick's incremental borrowing rate is 8%. Ludwick is unaware of the rate being used by the lessor. At the end of the lease, Ludwick has the option to...
Question 2 View Policies Current Attempt in Progress Indigo Corp., which uses IFRS, signs non-renewable, non-cancellable...
Question 2 View Policies Current Attempt in Progress Indigo Corp., which uses IFRS, signs non-renewable, non-cancellable lease agreement to lease robotic equipment from Xiu Inc. The following information concerns the lease agreement. Inception date Lease term Fair value of equipment Jan 1, 2020 Economic life of leased equipment Annual rental payments starting Jan 1, 2020 Option to purchase at the end of the term Depreciation method Residual value Indigo's incremental borrowing rate January 1, 2020 5 years $190,000 7 years...
On January 1, 2017, Bramble Corporation signed a 5-year noncancelable lease for a machine. The terms...
On January 1, 2017, Bramble Corporation signed a 5-year noncancelable lease for a machine. The terms of the lease called for Bramble to make annual payments of $8,176 at the beginning of each year, starting January 1, 2017. The machine has an estimated useful life of 6 years and a $5,000 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Bramble uses the straight-line method of depreciation for all of its plant...
Marin enters into an agreement with Traveler Inc. to lease a car on December 31, 2019....
Marin enters into an agreement with Traveler Inc. to
lease a car on December 31, 2019. The following information relates
to this agreement.
1.The term of the non-cancelable lease is 3 years with
no renewal or bargain purchase option. The remaining economic life
of the car is 3 years, and it is expected to have no residual value
at the end of the lease term.2.The fair value of the car was
$15,540 at commencement of the lease.
3.Annual payments are...
Marin Company leases an automobile with a fair value of $16513 from John Simon Motors, Inc.,...
Marin Company leases an automobile with a fair value of $16513 from John Simon Motors, Inc., on the following terms nting ates 1. Non-cancelable term of 50 months. 2. Rental of $340 per month at the beginning of each month).(The present value at 0.5% per month is $15,084) 3. Marin guarantees a residual value of $1420 (the present value at 0.5% per month is $1,107). Marinexpects the probable residual value to be $1.420 at the end of the lease term...
view Poll CIES Current Attempt in Progress port Skysong, Inc. leases a piece of equipment to...
view Poll CIES Current Attempt in Progress port Skysong, Inc. leases a piece of equipment to Bucks Company on January 1, 2017. The contract stipulates a lease term of 5 years, with equal annual rental payments of $4,704 at the end of each year. Ownership does not transfer at the end of the lease term. there is no bargain purchase option, and the asset is not of a specialized nature. The asset has a fair value of $31,052, a book...
Culver Limited has signed a lease agreement with Lantus Corp. to lease equipment with an expected lifespan of eight years, no estimated salvage value, and a cost to Lantus, the lessor of $170,000. The terms of the lease are as follows: • The lease term begins on January 1, 2019, and runs for 5 years. • The lease requires payments of $37,396 at the beginning of each year starting January 1, 2019. • At the end of the lease term,...
On January 1, 2017, Marin Corporation signed a 5-year
noncancelable lease for a machine. The terms of the lease called
for Marin to make annual payments of $8,560 at the beginning of
each year, starting January 1, 2017. The machine has an estimated
useful life of 6 years and a $4,800 unguaranteed residual value.
The machine reverts back to the lessor at the end of the lease
term. Marin uses the straight-line method of depreciation for all
of its plant...
Marin Leasing Company signs a lease agreement on January 1,
2017, to lease electronic equipment to Cullumber 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.
Cullumber has the option to purchase the equipment for $27,000
upon termination of the lease. It is not reasonably certain that
Cullumber will exercise this option.
2.
The equipment has a cost of $340,000 and...
Laura Leasing Company signs an agreement on January 1, 2017, to lease equipment to Marin Company. The following information relates to this agreement. 1. The term of the noncancelable lease is 5 years with no renewal option. The equipment has arn estimated economic life of 5 years. 2. The fair value of the asset at January 1, 2017, is $82,500. The asset will revert to the lessor at the end of the lease term, at which time the asset is...
Question 6 Ludwick Steel Company, as lessee, signed a lease agreement for equipment for 5 years, beginning December 31, 2020. Annual rental payments of $40,000 are to be made at the beginning of each lease year (December 31). The interest rate used by the lessor in setting the payment schedule is 6%; Ludwick's incremental borrowing rate is 8%. Ludwick is unaware of the rate being used by the lessor. At the end of the lease, Ludwick has the option to...
Question 2 View Policies Current Attempt in Progress Indigo Corp., which uses IFRS, signs non-renewable, non-cancellable lease agreement to lease robotic equipment from Xiu Inc. The following information concerns the lease agreement. Inception date Lease term Fair value of equipment Jan 1, 2020 Economic life of leased equipment Annual rental payments starting Jan 1, 2020 Option to purchase at the end of the term Depreciation method Residual value Indigo's incremental borrowing rate January 1, 2020 5 years $190,000 7 years...
On January 1, 2017, Bramble Corporation signed a 5-year noncancelable lease for a machine. The terms of the lease called for Bramble to make annual payments of $8,176 at the beginning of each year, starting January 1, 2017. The machine has an estimated useful life of 6 years and a $5,000 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Bramble uses the straight-line method of depreciation for all of its plant...
Marin enters into an agreement with Traveler Inc. to
lease a car on December 31, 2019. The following information relates
to this agreement.
1.The term of the non-cancelable lease is 3 years with
no renewal or bargain purchase option. The remaining economic life
of the car is 3 years, and it is expected to have no residual value
at the end of the lease term.2.The fair value of the car was
$15,540 at commencement of the lease.
3.Annual payments are...
Marin Company leases an automobile with a fair value of $16513 from John Simon Motors, Inc., on the following terms nting ates 1. Non-cancelable term of 50 months. 2. Rental of $340 per month at the beginning of each month).(The present value at 0.5% per month is $15,084) 3. Marin guarantees a residual value of $1420 (the present value at 0.5% per month is $1,107). Marinexpects the probable residual value to be $1.420 at the end of the lease term...
view Poll CIES Current Attempt in Progress port Skysong, Inc. leases a piece of equipment to Bucks Company on January 1, 2017. The contract stipulates a lease term of 5 years, with equal annual rental payments of $4,704 at the end of each year. Ownership does not transfer at the end of the lease term. there is no bargain purchase option, and the asset is not of a specialized nature. The asset has a fair value of $31,052, a book...
Most questions answered within 3 hours.
-
4. Without doing any calculations, predict whether the observed
∆T would increase, decrease or remain the...
asked 41 minutes ago -
Based on the range, which of the following sets of scores has
the greatest variability? 3,...
asked 1 hour ago -
Ripples in a pond travel at a velocity of 3 m/s with one peak
passing a...
asked 1 hour ago -
A man stands on the roof of a building of height 13.0 mm and
throws a...
asked 1 hour ago -
The extent to which assets are financed by borrowed funds and
other liabilities is indicated by:...
asked 2 hours ago -
Explain in detail
Germany is the fifth largest economy
explain what goods and services Germany specializes...
asked 3 hours ago -
The density of platinum is 21.45 g/mL. If a cube of platinum
with a mass of...
asked 3 hours ago -
Accounts Receivable
Sales
A/R Posting
Extended Sales Invoice
Packing Slip
Compare invoice to packing slip 2...
asked 3 hours ago -
Michaella, age 23, is a full-time law student and is claimed by
her parents as a...
asked 3 hours ago -
Why are polymers not typically casted into products?
asked 3 hours ago -
When rolling a die 129 times, what is the probability of rolling
a 6 no more...
asked 3 hours ago -
4. A call option currently sells for $7.75. It has a strike
price of $85 and...
asked 3 hours ago