I need help with the calculations for the first entry.
LEASE AMOUNT | 300000 | |
FIRST PAYMENT | 48337 | |
REMAINING AMOUNT | 251663 | |
INTEREST RATE | 8% | |
INTEREST AMOUNT | 20133.04 | |
Interest Expense a/c Dr. | 20133 | |
Lease Liability A/C Dr. | 28204 | |
To Cash | 48337 |
I need help with the calculations for the first entry. Rick Kleckner Corporation recorded a right-of-use...
Rick Kleckner Corporation recorded a right-of-use asset for $300,000 as a result of a finance lease on December 31, 2019. Kleckner's incremental borrowing rate is 8%, and the implicit rate of the lessor was not known at the commencement of the lease. Kleckner made the first lease payment of $48,337 on on December 31, 2019. The lease requires 8 annual payments. The equipment has a useful life of 8 years with no residual value. Prepare Kleckner's December 31, 2020, entries....
Brief Exercise 20-8 McCormick Ltd., a public company following IFRS 16, recorded a right-of-use asset and lease liability at $150,000 on May 1, 2020. The interest rate is 10%. McCormick made the first lease payment of $25,561 on May 1, 2020. The lease requires a total of 8 annual payments. The equipment has a useful life of 8 years with no residual value. Prepare McCormick's December 31, 2020 adjusting entries. (Credit account titles are automatically indented when the amount is...
Brief Exercise 20-8 McCormick Ltd., a public company following IFRS 16, recorded a right-of-use asset and lease liability at $150,000 on May 1, 2020. The interest rate is 10%. McCormick made the first lease payment of $25,561 on May 1, 2020. The lease requires a total of 8 annual payments. The equipment has a useful life of 8 years with no residual value. Prepare McCormick's December 31, 2020 adjusting entries. (Credit account titles are automatically indented when the amount is...
LeBron James (LBJ) Corporation agrees on January 1, 2017, to lease equipment from Cavaliers, Inc. for 3 years. The lease calls for annual lease payments of $17,000 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 years, and the present value of the lease payments is less than 90% of the fair value...
LeBron James (LBJ) Corporation agrees on January 1, 2020, to
lease equipment from Cavaliers, Inc. for 3 years. The lease calls
for annual lease payments of $23,000 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 years, and the
present value of the lease payments is less than 90% of the fair
value...
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...
Brief Exercise 21-06 Metlock Company leased equipment from Costner Company, beginning on December 31, 2019. The lease term is 6 years and requires equal rental payments of $24,542 at the beginning of each year of the lease, starting on the commencement date (December 31, 2019). The equipment has a fair value at the commencement date of the lease of $120,000, an estimated useful life of 6 years, and no estimated residual value. The appropriate interest rate is 9%. Click here...
Please
Oriole Company, a machinery dealer, leased a machine to Dexter Corporation on January 1, 2020. The lease is for an 8-year period and requires equal annual payments of $33,300 at the beginning of each year. The first payment is received on January 1, 2020. Oriole had purchased the machine during 2019 for $150,000. Collectibility of lease payments by Oriole is probable. Oriole set the annual rental to ensure a 6% rate of return. The machine has an economic life...
Question 2 Your answer is partially correct. Try again. LeBron James (LBJ) Corporation agrees on January 1, 2020, to lease equipment from Cavaliers, Inc. for 3 years. The lease calls for annual lease payments of $23,000 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 years, and the present value of the lease...
*Brief Exercise 21-06 Kingbird Company leased equipment from Costner Company, beginning on December 31, 2019. The lease term is 4 years and requires equal rental payments of $32,230 at the beginning of each year of the lease, starting on the commencement date (December 31, 2019). The equipment has a fair value at the commencement date of the lease of $120,000, an estimated useful life of 4 years, and no estimated residual value. The appropriate interest rate is 5%. Click here...