In the case of an operating lease, with payments being made in advance, how is a...
In the case of an operating lease, with payments being made in advance, how is a lessor able to recognize revenue at the time the payment is made?
Homework Answers
In an operating lease, when the payment is made in advance, the advance amount is credited to "Unearned Rent Revenue".
Subsequently, when the lease rent is actually due, the unearned rent revenue is debited and "Rent revenue" account is credited for the amount of rent due.
Add Answer to:
In the case of an operating lease, with payments being made in
advance, how is a...
A finance lease agreement calls for quarterly lease payments of $7,392 over a 10-year lease term,...
A finance lease agreement calls for quarterly lease payments of $7,392 over a 10-year lease term, with the first payment on July 1, the beginning of the lease. The annual interest rate is 12%. Both the present value of the lease payments and the cost of the asset to the lessor are $176,000. Required: a. Prepare a partial amortization table up to the October 1 payment. b. What would be the amount of interest expense (revenue) the lessee (lessor) would...
A finance lease agreement calls for quarterly lease payments of $5,519 over a 10-year lease term,...
A finance lease agreement calls for quarterly lease payments of $5,519 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 $154,000. Required: a. Prepare a partial amortization table up to the October 1 payment. b. What would be the amount of interest expense (revenue) the lessee (lessor) would...
A finance lease agreement calls for quarterly lease payments of $6,720 over a 10-year lease term,...
A finance lease agreement calls for quarterly lease payments of $6,720 over a 10-year lease term, with the first payment on July 1, the beginning of the lease. The annual interest rate is 12%. Both the present value of the lease payments and the cost of the asset to the lessor are $160,000. Required: a. Prepare a partial amortization table up to the October 1 payment. b. What would be the amount of interest expense (revenue) the lessee (lessor) would...
A finance lease agreement calls for quarterly lease payments of $4,625 over a 15-year lease term,...
A finance lease agreement calls for quarterly lease payments of $4,625 over a 15-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 $164,000. a.Prepare a partial amortization table up to the October 1 payment . b. What would be the amount of interest expense (revenue) the lessee (lessor) would record...
A finance lease agreement calls for quarterly lease payments of $5,753 over a 12-year lease term,...
A finance lease agreement calls for quarterly lease payments of $5,753 over a 12-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 $180,000 Required: o. Prepare a partial amortization table up to the October 1 payment. b. What would be the amount of interest expense (revenue) the lessee (lesson) would...
A finance lease agreement calls for quarterly lease payments of $4,851 over a 15-year lease term,...
A finance lease agreement calls for quarterly lease payments of $4,851 over a 15-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 $172,000. Required: a. Prepare a partial amortization table up to the October 1 payment. b. What would be the amount of interest expense (revenue) the lessee (lessor) would...
1. Record the beginning of the lease for Winn. 2.Record the advance payment made at the...
1. Record the beginning of the
lease for Winn.
2.Record the advance payment made at the beginning of the lease
by Winn.
3.Record the lease payment for Winn.
4. Record the amortization the right-of-use asset for Winn.
5.Recored depreciation for Winn.
6.Recored the lease payment for Winn.
7. Record the amortization of the right-of-use asset for
Winn.
8.Recored deprecation for Winn.
9.Recored the lease payment for Winn.
10.Recored the amortization of the right-of-use asset for
Winn.
11. Recored depreciation for...
A lease agreement that qualifies as a finance lease calls for annual lease payments of $50,000...
A lease agreement that qualifies as a finance lease calls for annual lease payments of $50,000 over a six-year lease term (also the asset's useful life), with the first payment at January 1, the beginning of the lease. The interest rate is 5%. The lessor's fiscal year is the calendar year. The lessor manufactured this asset at a cost of $235,000. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)...
On January 1, 2021, Winn Heat Transfer leased office space under a three-year operating lease agreement....
On January 1, 2021, Winn Heat Transfer leased office space under a three-year operating lease agreement. The arrangement specified three annual lease payments of $80,000 each, beginning December 21, 2021, and at each December 31 through 2023. The lessor, HVAC Leasing calculates lease payments based on annual interest rate of 5%. Winn also paid a $100,000 advance payment at the beginning of the lease. With permission of the owner, Winn made a structural modifications to the building before occupying the...
A lease agreement that qualifies as a finance lease calls for annual lease payments of $30,000...
A lease agreement that qualifies as a finance lease calls for annual lease payments of $30,000 over a four-year lease term (also the asset’s useful life), with the first payment at January 1, 2016, the beginning of the lease. The interest rate is 8%. The lessor’s fiscal year is the calendar year. The lessor manufactured this asset at a cost of $100,000. Required: c. What would be the increase in earnings that the lessor would report in its income statement...
A finance lease agreement calls for quarterly lease payments of $5,519 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 $154,000. Required: a. Prepare a partial amortization table up to the October 1 payment. b. What would be the amount of interest expense (revenue) the lessee (lessor) would...
A finance lease agreement calls for quarterly lease payments of $6,720 over a 10-year lease term, with the first payment on July 1, the beginning of the lease. The annual interest rate is 12%. Both the present value of the lease payments and the cost of the asset to the lessor are $160,000. Required: a. Prepare a partial amortization table up to the October 1 payment. b. What would be the amount of interest expense (revenue) the lessee (lessor) would...
A finance lease agreement calls for quarterly lease payments of $5,753 over a 12-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 $180,000 Required: o. Prepare a partial amortization table up to the October 1 payment. b. What would be the amount of interest expense (revenue) the lessee (lesson) would...
A finance lease agreement calls for quarterly lease payments of $4,851 over a 15-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 $172,000. Required: a. Prepare a partial amortization table up to the October 1 payment. b. What would be the amount of interest expense (revenue) the lessee (lessor) would...
1. Record the beginning of the
lease for Winn.
2.Record the advance payment made at the beginning of the lease
by Winn.
3.Record the lease payment for Winn.
4. Record the amortization the right-of-use asset for Winn.
5.Recored depreciation for Winn.
6.Recored the lease payment for Winn.
7. Record the amortization of the right-of-use asset for
Winn.
8.Recored deprecation for Winn.
9.Recored the lease payment for Winn.
10.Recored the amortization of the right-of-use asset for
Winn.
11. Recored depreciation for...
A lease agreement that qualifies as a finance lease calls for annual lease payments of $50,000 over a six-year lease term (also the asset's useful life), with the first payment at January 1, the beginning of the lease. The interest rate is 5%. The lessor's fiscal year is the calendar year. The lessor manufactured this asset at a cost of $235,000. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)...
Most questions answered within 3 hours.
-
Hows does water affect the digestion of fats ?
asked 41 minutes ago -
A buffer that contains 0.41 M of a base, B and 0.21 M of its
conjugate...
asked 43 minutes ago -
Pleaaaaaaaasssssse help me please please it's more important
:((((((((((((((((((((
CASE STUDY
Nissan Company
Nissan Motor Company,...
asked 47 minutes ago -
Calculate the concentration of hydronium and hyroxide ions in 1)
2.0 mol/L HNO3 2) 0.5 mol/L...
asked 1 hour ago -
In a loop-the-loop ride a car goes around a vertical, circular
loop at a constant speed....
asked 1 hour ago -
50 grams each of water (18.015 g/mol) and ethylene glycol
(C2H6O2) (62.07 g/mol) are mixed. At...
asked 1 hour ago -
The life expectancy of sport utility vehicles follows a normal
distribution with a mean of 145.8...
asked 1 hour ago -
If an object with mass of 5 kg is pushed with a force of 552 N,...
asked 1 hour ago -
Suppose your program already has a list called nums, which
contains several numbers. Write a for...
asked 1 hour ago -
A spherical shell with a finite thickness just barely floats in
water. If the shell is...
asked 1 hour ago -
Explain in detail whether the following is true or false:
Total factor productivity will rise only...
asked 1 hour ago -
A firm pays a $2.50 dividend at the end of year one
(D1), has a stock...
asked 1 hour ago