Accounting
Rogers Company signs a five-year capital lease with Packer Company for office equipment. The annual year-end lease payment is $10,000, and the interest rate is 8%. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided.)
2. Prepare the journal entry to record Rogers’s capital lease at its inception.
3. Complete a lease payment schedule for the five years of the lease with the following headings. Assume that the beginning balance of the lease liability is the present value of lease payments.
4. Use straight-line depreciation and prepare the journal entry to depreciate the leased asset at the end of year 1. Assume zero salvage value and a five-year life for the office equipment.
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please explain the process UD-Describe accounting for leases and pensions eck my work ue, 08 points...
please explain the process
UD-Describe accounting for leases and pensions eck my work ue, 08 points . Complete a lease payment schedule for the five years of the lease with the following headings Assume that the beginning balance of the lease liability is the present value of lease payments. Required Information X Beginning Balance of Lease Liability Cash Lease Payment Ending Balance of Lease Liability Period Ending Interest on Lease Liability Lease Liability Reduction of Date The following information applies...
Harbor (lessee) signs a five-year capital lease for office equipment with a $10,000 annual lease payment...
Harbor (lessee) signs a five-year capital lease for office equipment with a $10,000 annual lease payment The present value of the five annual lease payments is $41,000, based on a 7% interest rate. 1. Prepare the journal entry Harbor will record at inception of the lease. 2. If the leased asset has a five-year useful life with no salvage value, prepare the journal entry Harbor will record each year to recognize depreciation expense related to the leased asset.
On January 1, Harbor (lessee) signs a five-year lease for equipment that is accounted for as...
On January 1, Harbor (lessee) signs a five-year lease for equipment that is accounted for as a finance lease. The lease requires five $21,000 lease payments (the first at the beginning of the lease and the remaining four at December 31 of years 1, 2, 3, and 4), and the present value of the five annual lease payments is $90,555, based on an 8% interest rate. 1. Prepare the January 1 journal entry Harbor records at inception of the lease...
On January 1, Harbor (lessee) signs a five-year lease for equipment that is accounted for as...
On January 1, Harbor (lessee) signs a five-year lease for equipment that is accounted for as a finance lease. The lease requires five $28,000 lease payments (the first at the beginning of the lease and the remaining four at December 31 of years 1, 2, 3, and 4), and the present value of the five annual lease payments is $125,023, based on a 6% interest rate. 1. Prepare the January 1 journal entry Harbor records at inception of the lease...
QS 10-18C Recording capital leases LO C3 Algoma, Inc., signs a five-year lease for office equipment...
QS 10-18C Recording capital leases LO C3 Algoma, Inc., signs a five-year lease for office equipment with Office Solutions. The present value of the lease payments is $10.720. Prepare the journal entry that Algoma records at the inception of this capital lease. View transaction list Journal entry worksheet Record the capital lease of office equipment of $10,720. Note: Enter debits before credits. General Journal Debit Transaction Credit < Prev 13 of 14 ! Next > O EL
need help on a-c2 McCormick County agreed to acquire a new recreation equipment storage facility under...
need help on a-c2
McCormick County agreed to acquire a new recreation equipment storage facility under a lease financing agreement. At the inception of the lease, a payment of $750,000 will be made; four additional annual lease payments, each in the amount of $750,000, are to be made at the end of each year, beginning late in the current year. The total amount to be paid under this lease is $3,750,000. The lease arrangements implied an annual interest rate of...
On January 1, Harbor (lessee) signs a five-year lease for equipment that is accounted for as...
On January 1, Harbor (lessee) signs a five-year lease for
equipment that is accounted for as a finance lease. The lease
requires five $22,000 lease payments (the first at the beginning of
the lease and the remaining four at December 31 of years 1, 2, 3,
and 4), and the present value of the five annual lease payments is
$93,274, based on a 9% interest rate. 1. Prepare the January 1
journal entry Harbor records at inception of the lease...
When a lessee is accounting for a capital (finance) lease a) a guaranteed residual value is...
When a lessee is accounting for a capital (finance) lease a) a guaranteed residual value is excluded from the “minimum lease payments.” b) an unguaranteed residual value is excluded from the “minimum lease payments.” c) a guaranteed residual value is basically an additional lease payment due at the end of the lease. d) the present value of any guaranteed residual is deducted from the leased asset cost in determining the depreciable amount. In calculating depreciation of a leased asset, the...
Problem 14-11AC On January 1, Rogers (lessee) signs a three-year lease for machinery that is accounted...
Problem 14-11AC On January 1, Rogers (lessee) signs a three-year lease for machinery that is accounted for as a finance lease. The lease requires three S18,000 lease payments (the first at the beginning of the lease and the remaining two at December 31 of Year 1 and Year 2). The present value of the three annual lease payments is $51,000, using a 6.003 % interest rate. The lease payment schedule follows. Accounting for finance lease C3 Payments (A) (в) Debi...
Refer to the lease details in Problem 14-11B. Assume that this lease is classified as an...
Refer to the lease details in Problem 14-11B. Assume that this lease is classified as an operating lease instead of a finance lease. Problem 14-12B Accounting for operating lease Required 1. Prepare the January 1 journal entry at the start of the lease to record any asset or liability. 2. Prepare the January 1 journal entry to record the first $14,000 cash lease payment. 3. Prepare the December 31 journal entry to record amortization at the end of (a) Year...
please explain the process
UD-Describe accounting for leases and pensions eck my work ue, 08 points . Complete a lease payment schedule for the five years of the lease with the following headings Assume that the beginning balance of the lease liability is the present value of lease payments. Required Information X Beginning Balance of Lease Liability Cash Lease Payment Ending Balance of Lease Liability Period Ending Interest on Lease Liability Lease Liability Reduction of Date The following information applies...
Harbor (lessee) signs a five-year capital lease for office equipment with a $10,000 annual lease payment The present value of the five annual lease payments is $41,000, based on a 7% interest rate. 1. Prepare the journal entry Harbor will record at inception of the lease. 2. If the leased asset has a five-year useful life with no salvage value, prepare the journal entry Harbor will record each year to recognize depreciation expense related to the leased asset.
On January 1, Harbor (lessee) signs a five-year lease for equipment that is accounted for as a finance lease. The lease requires five $21,000 lease payments (the first at the beginning of the lease and the remaining four at December 31 of years 1, 2, 3, and 4), and the present value of the five annual lease payments is $90,555, based on an 8% interest rate. 1. Prepare the January 1 journal entry Harbor records at inception of the lease...
QS 10-18C Recording capital leases LO C3 Algoma, Inc., signs a five-year lease for office equipment with Office Solutions. The present value of the lease payments is $10.720. Prepare the journal entry that Algoma records at the inception of this capital lease. View transaction list Journal entry worksheet Record the capital lease of office equipment of $10,720. Note: Enter debits before credits. General Journal Debit Transaction Credit < Prev 13 of 14 ! Next > O EL
need help on a-c2
McCormick County agreed to acquire a new recreation equipment storage facility under a lease financing agreement. At the inception of the lease, a payment of $750,000 will be made; four additional annual lease payments, each in the amount of $750,000, are to be made at the end of each year, beginning late in the current year. The total amount to be paid under this lease is $3,750,000. The lease arrangements implied an annual interest rate of...
On January 1, Harbor (lessee) signs a five-year lease for
equipment that is accounted for as a finance lease. The lease
requires five $22,000 lease payments (the first at the beginning of
the lease and the remaining four at December 31 of years 1, 2, 3,
and 4), and the present value of the five annual lease payments is
$93,274, based on a 9% interest rate. 1. Prepare the January 1
journal entry Harbor records at inception of the lease...
Problem 14-11AC On January 1, Rogers (lessee) signs a three-year lease for machinery that is accounted for as a finance lease. The lease requires three S18,000 lease payments (the first at the beginning of the lease and the remaining two at December 31 of Year 1 and Year 2). The present value of the three annual lease payments is $51,000, using a 6.003 % interest rate. The lease payment schedule follows. Accounting for finance lease C3 Payments (A) (в) Debi...
Refer to the lease details in Problem 14-11B. Assume that this lease is classified as an operating lease instead of a finance lease. Problem 14-12B Accounting for operating lease Required 1. Prepare the January 1 journal entry at the start of the lease to record any asset or liability. 2. Prepare the January 1 journal entry to record the first $14,000 cash lease payment. 3. Prepare the December 31 journal entry to record amortization at the end of (a) Year...
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