Answer:
1) | |||
Present value of periodic lease payments = $8730 x 15.32380 | 133776.77 | ||
present value of an annuity due of $1: n=20, i=2% | 16.67846 | ||
1-Jan | Right of use Assets | $ 133776.77 | |
LeasePayable (Present value of minimum lease payments) | $133776.77 | ||
1-Jan | Lease Payable | $ 8730 | |
Cash (Quarterly lease Payment) | $ 8730 | ||
31-Mar | Interest expense (2% x [$133776.77- 8730]) | $ 2500.94 | |
Lease payable (difference) | $ 6229.06 | ||
Cash (lease payment) | $ 8730 | ||
31-Mar | Amortization Expenses (133776.77/20) | $ 6688.84 | |
Right of use Assets | $ 6688.84 | ||
2) | |||
1-Jan | Lease receivable ( ([8730 × 16.67846**] + [$6738 × .67297*]) | $ 150137.43 | |
Cost of good Sold ($120000 - [$6738 × .67297*]) | $ 115465.53 | ||
Sales Revenue [$150137.43- ([$6738 × .67297*]) | $145602.96 | ||
Equipment | $120000 | ||
1-Jan | Cash | $ 8730 | |
Lease receivable | $ 8730 | ||
31-Mar | Cash | $ 8730 | |
Lease receivable | $ 5901.85 | ||
Interest revenue ($150137.43- $8730) x 2% | $ 2828.15 |
Newton Labs leased chronometers from Brookline Instruments on January 1, 2021. Brookline Instruments manufactured the chronometers...
Newton Labs leased chronometers from Brookline Instruments on January 1, 2021. Brookline Instruments manufactured the chronometers at a cost of $340,000. The chronometers have a fair value of $442,000. Appropriate adjusting entries are made quarterly. (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.) Or Use Intermediate Accounting table if not provided. Related Information: Lease term 5 years (20 quarterly periods) Quarterly lease...
Newton Labs leased chronometers from Brookline Instruments on January 1, 2021. Brookline Instruments manufactured the chronometers at a cost of $340,000. The chronometers have a fair value of $442,000. Appropriate adjusting entries are made quarterly. (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.) Related Information: Lease term 5 years (20 quarterly periods) Quarterly lease payments $ 24,729 at Jan. 1, 2021, and at...
Newton Labs leased chronometers from Brookline Instruments on January 1, 2021. Brookline Instruments manufactured the chronometers at a cost of $340,000. The chronometers have a fair value of $442,000. Appropriate adjusting entries are made quarterly. (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 5 years (20 quarterly periods) Quarterly lease payments $ 24,729 at Jan. 1, 2021, and...
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Newton Labs leased chronometers from Brookline Instruments on January 1, 2021. Brookline Instruments manufactured the chronometers at a cost of $300,000. The chronometers have a fair value of $375,275. Appropriate adjusting entries are made quarterly. (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 5 years (20 quarterly periods) Quarterly lease payments $ 21,821 at Jan. 1, 2021, and...
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Homework Seved Help Newton Labs leased chronometers from Brookline Instruments on January 1, 2021. Brookline Instruments manufactured the chronometers at a cost of $230,000. The chronometers have a fair value of $242.340. Appropriate adjusting entries are made quarterly. (FV of $1. PV of $1. FVA of $1. PVA of $1. EVAD of S1 and PVAD of $ (Use appropriate factors) from the tables provided Related Information: 5 years (20 quarterly periods) Quarterly lease payments $16,729 at Jan. 1, 2021, and...
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