Homework Answers
In a lease transaction, lessor is an owner of assets so lessor should record an asset and when lessor record assets then depreciation should also record by lessor.
Lessor also receive lease with an interest revenue.
But lessor has no liability in relation to lease but liability would be recorded by lessee.
So answer is d) a liability
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In connection with a lease transaction, the lessor would not record: Multiple Choice 0 an asset....
In a finance lease: the lessee records an asset and a liability for the present value...
In a finance lease: the lessee records an asset and a liability for the present value of lease payments. the lessor records an asset and a liability for the present value of lease payments. the lessee records an asset and a liability for the total of the lease payments. the lessor records an asset and a liability for the total of the lease payments. In connection with a lease of more than 12 months, the lessee always will record each...
Terms of a lease agreement and related facts were: The lease asset had a retail cash...
Terms of a lease agreement and related facts were: The lease asset had a retail cash selling price of $102,000. Its useful life was six years with no residual value (straight-line depreciation). Annual lease payments at the beginning of each year were $21,742, beginning January 1. Lessor’s implicit rate when calculating annual rental payments was 11%. Costs of $2,162 for legal fees for the lease execution were the responsibility of the lessor. Required: Prepare the appropriate entries for the lessor...
1. The lessee makes a lease payment of $73,600 to the lessor for equipment in an...
1. The lessee makes a lease payment of $73,600 to the lessor for equipment in an operating lease transaction. 2. Sandhill Company leases equipment from Noble Construction, Inc. The present value of the lease payments is $644,000. The lease qualifies as a capital lease. Prepare the journal entries that the lessee should make to record the above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No...
Terms of a lease agreement and related facts were: a. The lease asset had a retail...
Terms of a lease agreement and related facts were: a. The lease asset had a retail cash selling price of $135,000. Its useful life was six years with no residual value (straight-line depreciation). b. Annual lease payments at the beginning of each year were $27,693, beginning January 1. c. Lessor's implicit rate when calculating annual rental payments was 9%. d. Costs of $3,262 for legal fees for the lease execution were the responsibility of the lessor. Required: Prepare the appropriate...
The following relate to an operating lease agreement: The lease term is 3 years, beginning January...
The following relate to an operating lease agreement: The lease term is 3 years, beginning January 1, 2021. The leased asset cost the lessor $760,000 and had a useful life of eight years with no residual value. The lessor uses straight-line depreciation for its depreciable assets. Annual lease payments at the beginning of each year were $134,500. Incremental costs of negotiating and consummating the completed lease transaction incurred by the lessor were $4,950. a. record the lease revenue b. record...
Brief Exercise 15-3 (Algo) Lessee and lessor; calculate interest; finance/sales-type lease (LO15-2] A finance lease agreement...
Brief Exercise 15-3 (Algo) Lessee and lessor; calculate interest; finance/sales-type lease (LO15-2] A finance lease agreement calls for quarterly lease payments of $6,809 over a 10-year lease term, with the first payment on July 1, the beginning of the lease. The annual interest rate is 8%. Both the present value of the lease payments and the cost of the asset to the lessor are $190,000. Required: a. Prepare a partial amortization table up to the October 1 payment. b. What...
The following relate to an operating lease agreement: a. The lease term is 3 years, beginning...
The following relate to an operating lease agreement: a. The lease term is 3 years, beginning January 1, 2018. b. The leased asset cost the lessor $760,000 and had a useful life of eight years with no residual value. The lessor uses straight-lir depreciation for its depreciable assets. c. Annual lease payments at the beginning of each year were $134,500. d. Incremental costs of negotiating costs of negotiating and consummating the completed lease transaction incurred by the lessor were $4,950....
Which of the following is not a sufficient criterion for a lessor to classify a lease...
Which of the following is not a sufficient criterion for a lessor to classify a lease as a sales-type lease? Multiple Choice The lease transfers Ownership of the leased asset to the lessee at the end of the lease term. O The lessee has the option of acquiring the asset during or at the end of the lease term at a bargain price. O The present value of the lease payments is greater than the carrying value of the leased...
Zoom in on the image and the clarity resolves! The following relate to an operating lease...
Zoom in on the image and the clarity resolves!
The following relate to an operating lease agreement: a. The lease term is 3 years, beginning January 1, 2018 b. The leased asset cost the lessor $750,000 and had a useful life of eight years with no residual value. The lessor uses straight-line depreciation for its depreciable assets. c. Annual lease payments at the beginning of each year were $136,500. d. Incremental costs of negotiating costs of negotiating and consummating the...
1. (LESSOR ENTRIES FOR FINANCING LEASE WITH A GUARANTEED RESIDUAL) The following facts pertain to a...
1. (LESSOR ENTRIES FOR FINANCING LEASE WITH A GUARANTEED RESIDUAL) The following facts pertain to a non-cancelable lease agreement between Ace Leasing Company and King Company, a lessee. January 1, 2020 $137,171 $54,000 $500,000 Commencement of Lease Date Annual lease payment due at the beginning of the year beginning with January 1, 2020 Residual value of equipment at end of lease term, guaranteed by lessee Book Value of Lease Equipment on LESSOR books Lease term Economic life of leased equipment...
Terms of a lease agreement and related facts were: a. The lease asset had a retail cash selling price of $135,000. Its useful life was six years with no residual value (straight-line depreciation). b. Annual lease payments at the beginning of each year were $27,693, beginning January 1. c. Lessor's implicit rate when calculating annual rental payments was 9%. d. Costs of $3,262 for legal fees for the lease execution were the responsibility of the lessor. Required: Prepare the appropriate...
Brief Exercise 15-3 (Algo) Lessee and lessor; calculate interest; finance/sales-type lease (LO15-2] A finance lease agreement calls for quarterly lease payments of $6,809 over a 10-year lease term, with the first payment on July 1, the beginning of the lease. The annual interest rate is 8%. Both the present value of the lease payments and the cost of the asset to the lessor are $190,000. Required: a. Prepare a partial amortization table up to the October 1 payment. b. What...
The following relate to an operating lease agreement: a. The lease term is 3 years, beginning January 1, 2018. b. The leased asset cost the lessor $760,000 and had a useful life of eight years with no residual value. The lessor uses straight-lir depreciation for its depreciable assets. c. Annual lease payments at the beginning of each year were $134,500. d. Incremental costs of negotiating costs of negotiating and consummating the completed lease transaction incurred by the lessor were $4,950....
Which of the following is not a sufficient criterion for a lessor to classify a lease as a sales-type lease? Multiple Choice The lease transfers Ownership of the leased asset to the lessee at the end of the lease term. O The lessee has the option of acquiring the asset during or at the end of the lease term at a bargain price. O The present value of the lease payments is greater than the carrying value of the leased...
Zoom in on the image and the clarity resolves!
The following relate to an operating lease agreement: a. The lease term is 3 years, beginning January 1, 2018 b. The leased asset cost the lessor $750,000 and had a useful life of eight years with no residual value. The lessor uses straight-line depreciation for its depreciable assets. c. Annual lease payments at the beginning of each year were $136,500. d. Incremental costs of negotiating costs of negotiating and consummating the...
1. (LESSOR ENTRIES FOR FINANCING LEASE WITH A GUARANTEED RESIDUAL) The following facts pertain to a non-cancelable lease agreement between Ace Leasing Company and King Company, a lessee. January 1, 2020 $137,171 $54,000 $500,000 Commencement of Lease Date Annual lease payment due at the beginning of the year beginning with January 1, 2020 Residual value of equipment at end of lease term, guaranteed by lessee Book Value of Lease Equipment on LESSOR books Lease term Economic life of leased equipment...
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