On January 1, 2021, Rick's Pawn Shop leased a truck from Corey Motors for a six...
On January 1, 2021, Rick's Pawn Shop leased a truck from Corey Motors for a six-year period with an option to extend the lease for three years. Rick's had no significant economic incentive as of the beginning of the lease to exercise the 3-year extension option. Annual lease payments are $16,000 due on December 31 of each year, calculated by the lessor using a 4% discount rate. Assume that at the beginning of the third year, January 1, 2023, Rick's...
On January 1, 2021, Rick's Pawn Shop leased a truck from Corey Motors for a six-year period with an option to extend the lease for three years. Rick's had no significant economic incentive as of the beginning of the lease to exercise the 3-year extension option. Annual lease payments are $11,000 due on December 31 of each year, calculated by the lessor using a 7% discount rate. Assume that at the beginning of the third year, January 1, 2023, Rick's...
On January 1, 2021, Rick's Pawn Shop leased a truck from Corey Motors for a six-year period with an option to extend the lease for three years. Rick's had no significant economic incentive as of the beginning of the lease to exercise the 3-year extension option Annual lease payments are $21,000 due on December 31 of each year, calculated by the lessor using a 6% discount rate. Assume that at the beginning of the third year, January 1, 2023. Rick's...
On January 1, 2021, Rick’s Pawn Shop leased a truck from Corey Motors for a six-year period with an option to extend the lease for three years. Rick’s had no significant economic incentive as of the beginning of the lease to exercise the 3-year extension option. Annual lease payments are $15,000 due on December 31 of each year, calculated by the lessor using a 6% discount rate. Assume that at the beginning of the third year, January 1, 2023, Rick’s...
On January 1, 2018, Rick’s Pawn Shop leased a truck from Chumley Motors for a six-year period with an option to extend the lease for three years. Rick’s had no significant economic incentive as of the beginning of the lease to exercise the 3-year extension option. Annual lease payments are $14,000 due on December 31 of each year, calculated by the lessor using a 7% discount rate. The expected useful life of the asset is 9 years and its fair...
On January 1, 2018, Rick’s Pawn Shop leased a truck from Corey Motors for a six-year period with an option to extend the lease for three years. Rick’s had no significant economic incentive as of the beginning of the lease to exercise the 3-year extension option. Annual lease payments are $10,000 due on December 31 of each year, calculated by the lessor using a 5% interest rate. The agreement is considered an operating lease.Required:1. Prepare Rick’s journal entry to record...
Chapter 15 - Homework Served 15 On January 1, 2021, Rick's Pawn Shop leased a truck from Corey Motors for a seven-year period with an option extend the lease for three years. Rick's had no significant economic incentive as of the beginning of the lease to exercise the 3-year extension option. Annual lease payments are $18,000 due on December 31 of each year, calculated by the lessor using a 4% interest rate. The agreement is considered an operating lease. (FV...
15 On January 1, 2018, Rick's Pawn Shop leased a truck from Chumley Motors for a six-year period with an option to extend the lease for three years. Rick's had no significant economic incentive as of the beginning of the lease to exercise the 3-year extension option. Annual lease payments are S 19,000 due on December 31 of each year, calculated by the lessor using a 5% nterest rate. The agreement is considered an operating lease. (FV of S1. PV...
the entries are correct please help on the amounts!! On January 1, 2021, Rick's Pawn Shop leased a truck from Corey Motors for a seven-year period with an option to extend the lease for three years. Rick's had no significant economic incentive as of the beginning of the lease to exercise the 3-year extension option Annual lease payments are $16,500 due on December 31 of each year, calculated by the lessor using a 4% interest rate. The agreement is considered...
On January 1, 2021, Rick's Pawn Shop leased a truck from Corey Motors for a six-year period with an option to extend the lease for three years. Rick's had no significant economic Incentive as of the beginning of the lease to exercise the 3-year extension option Annual lease payments are $25,000 due on December 31 of each year, calculated by the lessor using a 45 discount rate. Assume that at the beginning of the third year, January 1, 2023. Rick's...