Brief Exercise 21A-11 Assume that IBM leased equipment that was carried at a cost of $189,000...
Brief Exercise 21A-11
Assume that IBM leased equipment that was
carried at a cost of $189,000 to Blossom Company. The term of the
lease is 6 years December 31, 2016, with equal rental payments of
$43,864 beginning December 31, 2016. The fair value of the
equipment at commencement of the lease is $219,000. The equipment
has a useful life of 6 years with no salvage value. The lease has
an implicit interest rate of 8%, no bargain purchase option, and no
transfer of title. Collectibility of lease payments for IBM is
probable. Assume the sales-type lease was recorded at a present
value of $219,000.
Prepare IBM’s December 31, 2017, entry to record the lease
transaction with Blossom Company. (Credit account
titles are automatically indented when amount is entered. Do not
indent manually. Round answers to 0 decimal places e.g.
5,275.)
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Account Titles and Explanation |
Debit |
Credit |
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Homework Answers
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Brief Exercise 21A-11
Assume that IBM leased equipment that was
carried at a cost of $189,000...
Assume that IBM leased equipment that was carried at a cost of $195,000 to Cullumber Company. The...
Assume that IBM leased equipment that was carried at a cost of $195,000 to Cullumber Company. The term of the lease is 7 years December 31, 2016, with equal rental payments of $39,018 beginning December 31, 2016. The fair value of the equipment at commencement of the lease is $225,000. The equipment has a useful life of 7 years with no salvage value. The lease has an implicit interest rate of 7%, no bargain purchase option, and no transfer of...
Assume that IBM leased equipment that was carried at a cost of $104,000 to Sheridan Company....
Assume that IBM leased equipment that was carried at a cost of $104,000 to Sheridan Company. The term of the lease is 6 years December 31, 2016, with equal rental payments of $26,273 beginning December 31, 2016. The fair value of the equipment at commencement of the lease is $134,000. The equipment has a useful life of 6 years with no salvage value. The lease has an implicit interest rate of 7%, no bargain purchase option, and no transfer of...
Assume that IBM leased equipment that was camried at a cost of $150,000 to Blossom Company....
Assume that IBM leased equipment that was camried at a cost of $150,000 to Blossom Company. The term of the lease is 5 years December 31, 2019, with equal rental payments of $30,044 beginning December 31, 2019. The fairvalue of the equipment at commencement of the lease is $129,554. The equipment has a useful lide of 5 years with no salvage value. The lease has an implicit interest rate of 8% no bargain purchase option, and no transfer of title....
Assume the leased equipment that was carried at a cost of $150,000 to Blossom Company. The...
Assume the leased equipment that was carried at a cost of $150,000 to Blossom Company. The term of the lease is 5 years December 31, 2019, with equal rental payments of $30,044 beginning December 31, 2019. Their value of the equipment at commencement of the lease is $129,554. The equipment has a useful life of 5 years with no salvage value. The lease has an implicit interest rate of B no bain purchase option, and no transfer of title Collectibility...
Brief Exercise 21A-13 Monty Corporation manufactures drones. On December 31, 2016, it leased to Althaus Company...
Brief Exercise 21A-13
Monty Corporation manufactures drones. On December 31, 2016, it
leased to Althaus Company a drone that had cost $174,000 to
manufacture. The lease agreement covers the 5-year useful life of
the drone and requires five equal annual rentals of $58,800 payable
each December 31, beginning December 31, 2016. An interest rate of
9% is implicit in the lease agreement. Collectibility of the
rentals is not probable.
Prepare any journal entry for Monty on December 31, 2016.
(Credit...
8:23 . ill eTextbook Wiley el Con Collaboration W PLUS Support Question 6 View Policies Current...
8:23 . ill eTextbook Wiley el Con Collaboration W PLUS Support Question 6 View Policies Current Attempt in Progress Assume that IBM leased equipment that was carried at a cost of $201,000 to Pharoah Company. The term of the lease is 7 years December 31, 2019, with equal rental payments of $36,639 beginning December 31, 2019. The fair value of the equipment at commencement of the lease is $200,999. The equipment has a useful life of 7 years with no...
*Exercise 21A-12 a-f On January 1, 2017, Cullumber Company leased equipment to Flynn Corporation. The following...
*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...
Brief Exercise 21A-12 Sage Hill Corporation manufactures drones. On December 31, 2016, it leased to Althaus...
Brief Exercise 21A-12
Sage Hill Corporation manufactures drones. On December 31, 2016,
it leased to Althaus Company a drone that had cost $105,300 to
manufacture. The lease agreement covers the 5-year useful life of
the drone and requires 5 equal annual rentals of $43,200 payable
each December 31, beginning December 31, 2016. An interest rate of
11% is implicit in the lease agreement. Collectibility of the
rentals is probable.
Prepare Sage Hill’s December 31, 2016, journal entries.
(Credit account titles...
Brief Exercise 21A-15 CALCULATOR PULL SCREEN PRINTER VERSION BACK NEXT Your answer is partially correct. Try...
Brief Exercise 21A-15 CALCULATOR PULL SCREEN PRINTER VERSION BACK NEXT Your answer is partially correct. Try again. LeBron James (8) Corporation agrees on January 1, 2017, to lease equipment from Cavaliers, Inc. for 3 years. The lease calls for annual lease payments of $22,000 at the beginning of each year, The lease does not transfer ownership, nor does it contain a bargain purchase option, and is not a specialized asset. In addition, the useful life of the equipment is 10...
Please help with finding the right account titles! Brief Exercise 21A-7 Your answer is partially correct....
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...
Assume that IBM leased equipment that was carried at a cost of $104,000 to Sheridan Company. The term of the lease is 6 years December 31, 2016, with equal rental payments of $26,273 beginning December 31, 2016. The fair value of the equipment at commencement of the lease is $134,000. The equipment has a useful life of 6 years with no salvage value. The lease has an implicit interest rate of 7%, no bargain purchase option, and no transfer of...
Assume that IBM leased equipment that was camried at a cost of $150,000 to Blossom Company. The term of the lease is 5 years December 31, 2019, with equal rental payments of $30,044 beginning December 31, 2019. The fairvalue of the equipment at commencement of the lease is $129,554. The equipment has a useful lide of 5 years with no salvage value. The lease has an implicit interest rate of 8% no bargain purchase option, and no transfer of title....
Assume the leased equipment that was carried at a cost of $150,000 to Blossom Company. The term of the lease is 5 years December 31, 2019, with equal rental payments of $30,044 beginning December 31, 2019. Their value of the equipment at commencement of the lease is $129,554. The equipment has a useful life of 5 years with no salvage value. The lease has an implicit interest rate of B no bain purchase option, and no transfer of title Collectibility...
Brief Exercise 21A-13
Monty Corporation manufactures drones. On December 31, 2016, it
leased to Althaus Company a drone that had cost $174,000 to
manufacture. The lease agreement covers the 5-year useful life of
the drone and requires five equal annual rentals of $58,800 payable
each December 31, beginning December 31, 2016. An interest rate of
9% is implicit in the lease agreement. Collectibility of the
rentals is not probable.
Prepare any journal entry for Monty on December 31, 2016.
(Credit...
8:23 . ill eTextbook Wiley el Con Collaboration W PLUS Support Question 6 View Policies Current Attempt in Progress Assume that IBM leased equipment that was carried at a cost of $201,000 to Pharoah Company. The term of the lease is 7 years December 31, 2019, with equal rental payments of $36,639 beginning December 31, 2019. The fair value of the equipment at commencement of the lease is $200,999. The equipment has a useful life of 7 years with no...
*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...
Brief Exercise 21A-12
Sage Hill Corporation manufactures drones. On December 31, 2016,
it leased to Althaus Company a drone that had cost $105,300 to
manufacture. The lease agreement covers the 5-year useful life of
the drone and requires 5 equal annual rentals of $43,200 payable
each December 31, beginning December 31, 2016. An interest rate of
11% is implicit in the lease agreement. Collectibility of the
rentals is probable.
Prepare Sage Hill’s December 31, 2016, journal entries.
(Credit account titles...
Brief Exercise 21A-15 CALCULATOR PULL SCREEN PRINTER VERSION BACK NEXT Your answer is partially correct. Try again. LeBron James (8) Corporation agrees on January 1, 2017, to lease equipment from Cavaliers, Inc. for 3 years. The lease calls for annual lease payments of $22,000 at the beginning of each year, The lease does not transfer ownership, nor does it contain a bargain purchase option, and is not a specialized asset. In addition, the useful life of the equipment is 10...
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...
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