Marin Corporation manufactures drones. On December 31, 2016, it leased to Althaus Company a drone that...
Novak Corporation manufactures drones. On December 31, 2019, it leased to Althaus Company a drone that had cost $138,000 to manufacture. The lease agreement covers the 5-year useful life of the drone and requires five equal annual rentals of $46,800 payable each December 31, beginning December 31, 2019. An interest rate of 6% is implicit in the lease agreement. Collectibility of the rentals is not probable. Prepare any journal entry for Novak on December 31, 2019. (Credit account titles are...
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...
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...
Skysong Corporation manufactures replicators. On January 1, 2017, it leased to Althaus Company a replicator that had cost $115,000 to manufacture. The lease agreement covers the 5-year useful life of the replicator and requires 5 equal annual rentals of $41,200 payable each January 1, beginning January 1, 2017. An interest rate of 10% is implicit in the lease agreement. Collectibility of the rentals is reasonably assured, and there are no important uncertainties concerning costs. Prepare Skysong's January 1, 2017, journal...
BE21-12. use the information for geiberger corporation from be21-12 , expect assume the collictibility of the rentals is not probable. prepare any journal entries for Geiberger on december 31,2016. i need soluton for both of the probles in the picture. (BE21.11L03) Geiberger AG manufactures drones. On Decem- ber 31, 2018, it leased to Althaus SA a drone that had cost €120,000 to manufacture. The lease agreement covers the 5-year useful life of the drone and requires five equal annual rentals...
Question 27 Blue Corporation manufactures replicators. On January 1, 2017, it leased to Althaus Company a replicator that had cost $102,700 to manufacture. The lease agreement covers the 5-year useful life of the replicator and requires 5 equal annual rentals of $41,900 payable each January 1, beginning January 1, 2017. An interest rate of 12% is implicit in the lease agreement. Collectibility of the rentals is reasonably assured, and there are no important uncertainties concerning costs. Prepare Blue’s January 1,...
Martinez Corporation manufactures replicators. On January 1, 2017, it leased to Althaus Company a replicator that had cost $102,900 to manufacture. The lease agreement covers the 5-year useful life of the replicator and requires 5 equal annual rentals of $44,300 payable each January 1, beginning January 1, 2017. An interest rate of 11% is implicit in the lease agreement. Collectibility of the rentals is reasonably assured, and there are no important uncertainties concerning costs. Prepare Martinez’s January 1, 2017, journal...
Oriole Corporation manufactures replicators. On January 1, 2017, it leased to Althaus Company a replicator that had cost $106,500 to manufacture. The lease agreement covers the 5-year useful life of the replicator and requires 5 equal annual rentals of $44,100 payable each January 1, beginning January 1, 2017. An interest rate of 11% is implicit in the lease agreement. Collectibility of the rentals is reasonably assured, and there are no important uncertainties concerning costs. Prepare Oriole’s January 1, 2017, journal...
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...
Pharoah Corporation, which uses ASPE, manufactures replicators. On May 29, 2020, it leased to Concord Limited a replicator that cost $265,600 to manufacture and usually sells for $419,000. The lease agreement covers the replicator’s 7-year useful life and requires seven equal annual rentals of $69,391 each, beginning May 29, 2020. The equipment reverts to Pharoah at the end of the lease, at which time it is expected that the replicator will have a residual value of $49,400, which is not...