Question:Shelf Leasing purchased a machine and leased it to ITA, Inc. on January 1, 2021. $32,629...
Question
Shelf Leasing purchased a machine and leased it to ITA, Inc. on January 1, 2021. $32,629...
Shelf Leasing purchased a machine and leased it to ITA, Inc. on January 1, 2021. $32,629 at the beginning of each quarter. 5 years (20 quarters) Lease description: Quarterly rental payments Lease term No residual value No Bargain Purchase Option Economic life of machine Implicit annual interest rate and lessee's annual incremental borrowing rate Fair value of asset Cost of the Asset to Shelf 5 years 12% $500,000 $300,000 The lease is noncancelable, collectibility of the rental payments is reasonably assured, and there are no lessor costs yet to be incurred. Required: Prepare appropriate entries for both ITA and Shelf Leasing from the inception of the lease through the second rental payment on April 1, 2021. Amortization is recorded at the end of each fiscal year (December 31).
Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2021. Edison purchased the equipment from International Machines at a cost of $112.080. Related Information: Lease term Quarterly rental payments Economic life of asset Fair value of asset Implicit interest rate (Also lessee's incremental borrowing rate) 2 years glasrterly periods) $15,000 t e beginning of each period 2 years $112,080 8% from the beginning of the leae Required: Prepare a lease amortization schedule and appropriate entries for Edison...
The following facts pertain to a noncancelable lease agreement
between Sandhill Leasing Company and Teal Company, a
lessee.
Inception date:
May 1, 2017
Annual lease payment due at
the beginning of
each year,
beginning with May 1, 2017
$19,373.99
Bargain-purchase option price
at end of lease term
$4,400
Lease term
5
years
Economic life of leased
equipment
10
years
Lessor’s cost
$62,000
Fair value of asset at May 1,
2017
$85,000
Lessor’s implicit rate
9
%
Lessee’s incremental
borrowing rate...
Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2021. Edison purchased the equipment from International Machines at a cost of $119,292. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Related Information: Lease term 2 years (8 quarterly periods) Quarterly rental payments $15,700 at the beginning of each period Economic life of asset 2 years Fair value of asset...
Edison Leasing leased high-tech electronic equipment to
Manufacturers Southern on January 1, 2021. Edison purchased the
equipment from International Machines at a cost of $113,515. (FV of
$1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
(Use appropriate factor(s) from the tables
provided.)
Related Information:
Lease term
2 years (8 quarterly periods)
Quarterly rental payments
$15,700 at the beginning of each period
Economic life of asset
2 years
Fair value of asset...
Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2021. Edison purchased the equipment from International Machines at a cost of $124,782. (FV of $1, PV of $1, FVA of $1, PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Related Information: Lease term Quarterly rental payments Economic life of asset Fair value of asset Implicit interest rate (Also lessee's incremental borrowing rate) 2 years (8 quarterly periods) $16,700...
Exercise 21-9 (Part Level Submission) The following facts pertain to a noncancelable lease agreement between Swifty Leasing Company and Nash Company, a lessee May 1, 2017 Inception date Annual lease payment due at the beginning of each year, beginning with May 1, 2017 Bargain-purchase option price at end of lease $18,758.38 $3,800 term Lease term Economic life of leased equipment Lessor's cost Fair value of asset at May 1, 2017 Lessor's implicit rate Lessee's incremental borrowing rate 5 years 10...
Lessor Sales Company and Lessee Manufacturing Company agreed to a noncancelable lease. The following in- formation is available to both entities regarding the lease terms and the leased asset. I. Lessor's cost of the leased asset was $30,000. The asset was new at the inception of the lease term. 2. Lease term is three years starting January 1,2020 3. Estimated useful life of the leased asset is six years. Estimated residual value at end of six years is zero. 4....
Technoid Inc. sells computer systems. Technoid leases computers
to Lone Star Company on January 1, 2013. The manufacturing cost of
the computers was $19 million.
This non-cancelable lease had the following terms:
•
Lease payments: $2,617,769 semiannually; first payment at
January 1, 2013; remaining payments at June 30 and December 31 each
year through June 30, 2017.
•
Lease term: 5 years (10 semi-annual payments)
•
No residual value; no bargain purchase option
•
Economic life of equipment: 5 years...
Bidwell Leasing purchased a single-engine plane for $400,000 and leased it to Red Baron Flying Club for its fair value of $645,526 on January 1, 2016.Terms of the lease agreement and related facts were:a. Eight annual payments of $110,000 beginning January 1, 2016, the inception of the lease, and at each December 31 through 2022. Bidwell Leasing’s implicit interest rate was 10%. The estimated useful life of the plane is eight years. Payments were calculated as follows:b. Red Baron’s incremental...
On January 1, 2017, Grouper Company leased equipment to Monty
Corporation. The following information pertains to this lease.
1. The term of the noncancelable lease is 6 years, with no
renewal option. The equipment reverts to the lessor at the
termination of the lease.
2. Equal rental payments are due on January 1 of each year,
beginning in 2017.
3. The fair value of the equipment on January 1, 2017, is
$184,000, and its cost is $147,200.
4. The equipment...
Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2021. Edison purchased the equipment from International Machines at a cost of $112.080. Related Information: Lease term Quarterly rental payments Economic life of asset Fair value of asset Implicit interest rate (Also lessee's incremental borrowing rate) 2 years glasrterly periods) $15,000 t e beginning of each period 2 years $112,080 8% from the beginning of the leae Required: Prepare a lease amortization schedule and appropriate entries for Edison...
Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2021. Edison purchased the equipment from International Machines at a cost of $119,292. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Related Information: Lease term 2 years (8 quarterly periods) Quarterly rental payments $15,700 at the beginning of each period Economic life of asset 2 years Fair value of asset...
Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2021. Edison purchased the equipment from International Machines at a cost of $124,782. (FV of $1, PV of $1, FVA of $1, PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Related Information: Lease term Quarterly rental payments Economic life of asset Fair value of asset Implicit interest rate (Also lessee's incremental borrowing rate) 2 years (8 quarterly periods) $16,700...
Exercise 21-9 (Part Level Submission) The following facts pertain to a noncancelable lease agreement between Swifty Leasing Company and Nash Company, a lessee May 1, 2017 Inception date Annual lease payment due at the beginning of each year, beginning with May 1, 2017 Bargain-purchase option price at end of lease $18,758.38 $3,800 term Lease term Economic life of leased equipment Lessor's cost Fair value of asset at May 1, 2017 Lessor's implicit rate Lessee's incremental borrowing rate 5 years 10...
Lessor Sales Company and Lessee Manufacturing Company agreed to a noncancelable lease. The following in- formation is available to both entities regarding the lease terms and the leased asset. I. Lessor's cost of the leased asset was $30,000. The asset was new at the inception of the lease term. 2. Lease term is three years starting January 1,2020 3. Estimated useful life of the leased asset is six years. Estimated residual value at end of six years is zero. 4....
Bidwell Leasing purchased a single-engine plane for $400,000 and leased it to Red Baron Flying Club for its fair value of $645,526 on January 1, 2016.Terms of the lease agreement and related facts were:a. Eight annual payments of $110,000 beginning January 1, 2016, the inception of the lease, and at each December 31 through 2022. Bidwell Leasing’s implicit interest rate was 10%. The estimated useful life of the plane is eight years. Payments were calculated as follows:b. Red Baron’s incremental...