Balance Sheet (Partial) | |
31 December 2018 | |
Current Liabilities | |
Lease Liability | $ 39,341 |
Interest Payable | $ 18,259 |
Long Term Liability | |
Lease Liability | $ 143,244 |
Assets | |
Property Plant and Equipment | |
Leased Equipment | $ 275,950 |
Accumulated Depreciation- Capital Lease | $ (57,490) |
Current Assets | |
Prepaid lease Executory Cost | $ 4,275 |
Problem 21-4 (Part Level Submission) The following facts pertain to a noncancelable lease agreement between Alschuler L...
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...
The following facts pertain to a noncancelable lease agreement between Wildhorse Leasing Company and McKee Electronics, a lessee, for a computer system. A) Assuming the lessor’s accounting period ends on September 30, answer the following questions with respect to this lease agreement. b) What items and amounts will appear on the lessor’s balance sheet at September 30, 2018? c) What items and amounts will appear on the lessor’s income statement for the year ending September 30, 2019? d) What items...
Problem 21-6 The following facts pertain to a noncancelable lease agreement between Faldo Leasing Company and Stellar Company, a lessee. January 1, 2017 $136,159 Inception date Annual lease payment due at the beginning of each year, beginning with January 1, 2017 Residual value of equipment at end of lease term, guaranteed by the lessee Lease term Economic life of leased equipment Fair value of asset at January 1, 2017 Lessor's implicit rate Lessee's incremental borrowing rate $54,000 6 years 6...
The following facts pertain to a noncancelable lease agreement between Wildhorse Leasing Company and McKee Electronics, a lessee, for a computer system. Commencement date October 1, 2017 Lease term 6 years Economic life of leased equipment 6 years Fair value of asset at October 1, 2017 $354,989 Book value of asset at October 1, 2017 $280,000 Residual value at end of lease term –0– Lessor’s implicit rate 9 % Lessee’s incremental borrowing rate 9 % Annual lease payment due at...
Problem 21-5 The following facts pertain to a noncancelable lease agreement between Alschuler Leasing Company and McKee Electronics, a lessee, for a computer system. Inception date Lease term Economic life of leased equipment Fair value of asset at October 1, 2017 Residual value at end of lease term Lessor's implicit rate Lessee's incremental borrowing rate Annual lease payment due at the beginning of October 1, 2017 6 years 6 years $300,383 10% 10% each year, beginning with October 1, 2017...
Problem 21-5 The following facts pertain to a noncancelable lease agreement between Sarasota Leasing Company and McKee Electronics, a lessee, for a computer system. Inception date October 1, 2017 Lease term 6 years Economic life of leased equipment 6 years Fair value of asset at October 1, 2017 $255,349 Residual value at end of lease term Lessor's implicit rate 10% Lessee's incremental borrowing rate 10% Annual lease payment due at the beginning of $53,300 each year, beginning with October 1,...
The following facts pertain to a noncancelable lease agreement between Alschuler Leasing Company and McKee Electronics, a lessee, for a computer system. Commencement date Lease term Economic life of leased equipment Residual value at the end of lease term Lessee's incremental borrowing rate Annual lease payment due at the beginning of each year, beginning with October 1, 2017 October 1, 2017 6 years 7 years $0 8.50% $65,000 The collectability of the lease payments is probable by the lessor. The...
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...
Exercise 21-8 The following facts pertain to a noncancelable lease agreement between Coronado Leasing Company and Whispering 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 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 $21,751.90 $3,700 5 years 10 years $67,000 $93,000...
The following facts pertain to a noncancelable lease agreement between Swifty Leasing Company and Nash Company, a lessee. Inception date: May 1, 2017 Annual lease payment due at the beginning of each year, beginning with May 1, 2017 $19,803.59 Bargain-purchase option price at end of lease term $3,900 Lease term 5 years Economic life of leased equipment 10 years Lessor’s cost $71,000 Fair value of asset at May 1, 2017 $85,000 Lessor’s implicit rate 10 % Lessee’s incremental borrowing rate...