Question

On January 1, 2021, Company A leased equipment from Company B. The lease agreement specifies ten annual payments of $20,000 b22

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Answer : Option D , company B will debit lease receivable for $1,35,180

Explanation :

Date Accouts Debit credit
January 1, 2021 lease receivable

$1,35,180

{$20,000 + $20,000(1÷ 1.1)^9}

Equipment $1,35,180
Add a comment
Know the answer?
Add Answer to:
22 On January 1, 2021, Company A leased equipment from Company B. The lease agreement specifies...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • On January 1, 2021, Company A leased equipment from Company B. The lease agreement specifies seven...

    On January 1, 2021, Company A leased equipment from Company B. The lease agreement specifies seven annual payments of $50,000 beginning January 1, 2021, the beginning of the lease, and at each December 31, thereafter. At the end of the seven-year lease term the equipment will be returned to the lessor and is expected to have a residual value of $24,000. The estimated useful life of the equipment is eight years. The interest rate in these financing arrangements is 10%....

  • On January 1, 2021, Lesco Leasing leased equipment to Quality Services under a finance/sales-type lease designed...

    On January 1, 2021, Lesco Leasing leased equipment to Quality Services under a finance/sales-type lease designed to earn NRC a 12% rate of return for providing long-term financing. The lease agreement specified: (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.) Ten annual payments of $56,000 beginning January 1, 2021, the beginning of the lease and each December 31 thereafter through 2029. The...

  • On January 1, 2021, NRC Credit Corporation leased equipment to Brand Services under a finance/sales-type lease...

    On January 1, 2021, NRC Credit Corporation leased equipment to Brand Services under a finance/sales-type lease designed to earn NRC a 11% rate of return for providing long-term financing. The lease agreement specified the following: Ten annual payments of $64,000 beginning January 1, 2021, the beginning of the lease and each December 31 thereafter through 2029. The estimated useful life of the leased equipment is 10 years with no residual value. Its cost to NRC was $392,223. The lease qualifies...

  • On January 1, 2021, NRC Credit Corporation leased equipment to Brand Services under a finance/sales-type lease...

    On January 1, 2021, NRC Credit Corporation leased equipment to Brand Services under a finance/sales-type lease designed to earn NRC a 10% rate of return for providing long-term financing. The lease agreement specified the following: Ten annual payments of $66,000 beginning January 1, 2021, the beginning of the lease and each December 31 thereafter through 2029. The estimated useful life of the leased equipment is 10 years with no residual value. Its cost to NRC was $412,300. The lease qualifies...

  • 1. On January 1, 2021, Sans Serif Publishers leased printing equipment from First Lease Corp. First...

    1. On January 1, 2021, Sans Serif Publishers leased printing equipment from First Lease Corp. First Lease Corp purchased the equipment from CompuDec Corporation at a cost of $479,079. · The lease agreement specifies six annual payments of $90,000 beginning January 1, 2021, the beginning of the lease, and at each December 31 from 2021 through 2025. • The six-year lease term ending December 31, 2026, is two years less than the expected useful life . There is no obligation...

  • On January 1, 2021, NRC Credit Corporation leased equipment to Brand Services under a finance/sales-type lease...

    On January 1, 2021, NRC Credit Corporation leased equipment to Brand Services under a finance/sales-type lease designed to earn NRC a 11% rate of return for providing long-term financing. The lease agreement specified the following: Ten annual payments of $64,000 beginning January 1, 2021, the beginning of the lease and each December 31 thereafter through 2029. The estimated useful life of the leased equipment is 10 years with no residual value. Its cost to NRC was $392,223. The lease qualifies...

  • On January 1, 2021, Gemini Corporation leased equipment under a finance lease designed to earn the...

    On January 1, 2021, Gemini Corporation leased equipment under a finance lease designed to earn the lessor a 11% rate of return for providing long-term financing. The lease agreement specified ten annual payments of $240,000 beginning January 1, and each December 31 thereafter through 2029. A 10-year service agreement was scheduled to provide maintenance of the equipment as required for a fee of $20,000 per year. Insurance premiums of $14,500 annually are related to the equipment. Both amounts were to...

  • On January 1, 2018, Lesco Leasing leased equipment to Quality Services under a finance/sales- type lease...

    On January 1, 2018, Lesco Leasing leased equipment to Quality Services under a finance/sales- type lease designed to earn NRC a 12% rate of return for providing long-term financing. The lease agreement specified: a. Ten annual payments of $56,000 beginning January 1, 2018, the beginning of the lease and each December 31 thereafter through 2026. b. The estimated useful life of the leased equipment is 10 years with no residual value. Its cost to Lesco was $322,741. c. The lease...

  • On January 1, 2021, Jasperse Corporation leased equipment under a finance lease designed to earn the...

    On January 1, 2021, Jasperse Corporation leased equipment under a finance lease designed to earn the lessor a 11% rate of return for providing long-term financing. The lease agreement specified ten annual payments of $120,000 beginning January 1, and each December 31 thereafter through 2029. A 10-year service agreement was scheduled to provide maintenance of the equipment as required for a fee of $5,000 per year. Insurance premiums of $4,000 annually are related to the equipment. Both amounts were to...

  • On January 1, 2020, Rowe leased a MRI machine from MA leasing. The lease agreement specifies...

    On January 1, 2020, Rowe leased a MRI machine from MA leasing. The lease agreement specifies 10 monthly payments of $9000.00 each beginning , 1/1/2020. The useful life of machine is estimated 3 years with an estimated residual value $50000 prepare journal entries for both the lessee and lessor

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT