Homework Answers
| Answer | |||
| 1 | phelps would classify the lease as a Sales - type lease | ||
| 2 | Walsh would classify the lease as a Finance lease. | ||
| 3 | For phelps | ||
| Lease Receivable $23,000 | |||
| Working | |||
| Annual Rent Payments | $ 4,703 | ||
| PVAF (5 periods, 8%) | 4.31213 | ||
| Present value of Rental Payment | A | $ 20,280 | |
| Expected Residual value (Unguarantee) | $ 4,000 | ||
| PVF (5 Periods,8%) | 0.68058 | ||
| Present Value of Residual Value | B | $ 2,722 | |
| Lease Receivable | A+B | $ 23,000 | |
| Rounded by $2 | |||
| Present Value of lease pay $20280 | |||
| Working | |||
| Annual Rent Payments | $ 4,703 | ||
| PVAF (5 periods, 8%) | 4.31213 | ||
| Present value of Rental Payment | A | $ 20,280 | |
| 4 | For Walsh | ||
| Walsh | |||
| Lease Liability / Right - of - Use Asset | $20280 | ||
| The initial lease liability for Walsh is $20280. | |||
| Please Like ( Positive rating ) | |||
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Exercise 21A-14 Your answer is partially correct. Try again. Phelps Company leases a building to Walsh,...
*Exercise 21-14 Your answer is partially correct. Try again. Phelps Company leases a building to Walsh,...
*Exercise 21-14 Your answer is partially correct. Try again. Phelps Company leases a building to Walsh, Inc. on January 1, 2020. The following facts pertain to the lease agreement. 1. The lease term is 5 years, with equal annual rental payments of $4,703 at the beginning of each year. 2. Ownership does not transfer at the end of the lease term, there is no bargain purchase option, and the asset is not of a specialized nature. 3. The building has...
Exercise 21A-14 Phelps Company leases a building to Walsh, Inc. on January 1, 2017. The following...
Exercise 21A-14 Phelps Company leases a building to Walsh, Inc. on January 1, 2017. The following facts pertain to the lease agreement. 1. The lease term is 5 years, with equal annual rental payments of $4,703 at the beginning of each year. 2. Ownership does not transfer at the end of the lease term, there is no bargain purchase option, and the asset is not of a specialized nature. 3. The building has a fair value of $23,000, a book...
E21.13 (LO 2,4) (Lessee-Lessor Entries, Sales-Type Lease; Guaranteed Residual Value) Phelps Company leases a building to...
E21.13 (LO 2,4) (Lessee-Lessor Entries, Sales-Type Lease; Guaranteed Residual Value) Phelps Company leases a building to Walsh, Inc. on January 1, 2020. The following facts pertain to the lease agreement. 1. The lease term is 5 years, with equal annual rental payments of $4,703 at the beginning of each year. 2. Ownership does not transfer at the end of the lease term, there is no bargain purchase option, and the asset is not of a specialized nature. 3. The building...
BACK NEXT Exercise 21A-13 b Ivanhoe Company leases a building to Walsh, Inc. on January 1,...
BACK NEXT Exercise 21A-13 b Ivanhoe Company leases a building to Walsh, Inc. on January 1, 2017. The following facts pertain to the lease agreement. 1. The lease term is 4 years, with equal annual rental payments of $4,196 at the beginning of each year. 2. Ownership does not transfer at the end of the lease term, there is no bargain purchase option, and the asset is not of a specialized nature. 3. The building has a fair value of...
Image is clear but large, please zoom in with either Ctrl + or the zoom feature...
Image is clear but large, please zoom in with either Ctrl + or
the zoom feature in your web browser.
Exercise 21A-13 b Phelps Company leases a building to Walsh, Inc. on January 1, 2017. The following facts pertain to the lease agreement. 1. The lease term is 5 years, with equal annual rental payments of $4,703 at the beginning of each year. 2. Ownership does not transfer at the end of the lease term, there is no bargain purchase...
Sunland Company leases a building to Walsh, Inc. on January 1, 2017. The following facts pertain...
Sunland Company leases a building to Walsh, Inc. on January 1, 2017. The following facts pertain to the lease agreement. The lease term is 5 years, with equal annual rental payments of $4,068 at the beginning of each year. 1. Ownership does not transfer at the end of the lease term, there is no bargain purchase option, and the asset is not of a specialized nature. 2. The building has a fair value of $20,200, a book value to Sunland...
Cullumber Company leases a building to Walsh, Inc. on January 1, 2017. The following facts pertain...
Cullumber Company leases a building to Walsh, Inc. on January 1, 2017. The following facts pertain to the lease agreement. 1. The lease term is 6 years, with equal annual rental payments of $3,137 at the beginning of each year. 2. Ownership does not transfer at the end of the lease term, there is no bargain purchase option, and the asset is not of a specialized nature. 3. The building has a fair value of $16,800, a book value to...
Oriole Company leases a building to Walsh, Inc. on January 1, 2017. The following facts pertain...
Oriole Company leases a building to Walsh, Inc. on January 1,
2017. The following facts pertain to the lease agreement. 1. The
lease term is 5 years, with equal annual rental payments of $3,937
at the beginning of each year. 2. Ownership does not transfer at
the end of the lease term, there is no bargain purchase option, and
the asset is not of a specialized nature. 3. The building has a
fair value of $19,500, a book value to...
+ Cullusobas Company leases a building to Walsh, Inc. on January 1, 2017. The following facts...
+ Cullusobas Company leases a building to Walsh, Inc. on January 1, 2017. The following facts pertain to the lease agreement. 4 1. The lease term is 6 years, with equal annual rental payments of $3,137 at the beginning of each year. 2. Ownership does not transfer at the end of the lease term, there is no bargain purchase option, and the asset is not of a specialized nature. 3. The building has a fair value of $16,800, a book...
Your answer is partially correct. Try again. Laura Leasing Company signs an agreement on January 1,...
Your answer is partially correct. Try again. Laura Leasing Company signs an agreement on January 1, 2017, to lease equipment to Swifty Company. The following information relates to this agreement. 1. 2. 3. 4. 5. 6. The term of the non-cancelable lease is 3 years with no renewal option. The equipment has an estimated economic life of 5 years. The fair value of the asset at January 1, 2017, is $69,000. The asset will revert to the lessor at the...
*Exercise 21-14 Your answer is partially correct. Try again. Phelps Company leases a building to Walsh, Inc. on January 1, 2020. The following facts pertain to the lease agreement. 1. The lease term is 5 years, with equal annual rental payments of $4,703 at the beginning of each year. 2. Ownership does not transfer at the end of the lease term, there is no bargain purchase option, and the asset is not of a specialized nature. 3. The building has...
Exercise 21A-14 Phelps Company leases a building to Walsh, Inc. on January 1, 2017. The following facts pertain to the lease agreement. 1. The lease term is 5 years, with equal annual rental payments of $4,703 at the beginning of each year. 2. Ownership does not transfer at the end of the lease term, there is no bargain purchase option, and the asset is not of a specialized nature. 3. The building has a fair value of $23,000, a book...
E21.13 (LO 2,4) (Lessee-Lessor Entries, Sales-Type Lease; Guaranteed Residual Value) Phelps Company leases a building to Walsh, Inc. on January 1, 2020. The following facts pertain to the lease agreement. 1. The lease term is 5 years, with equal annual rental payments of $4,703 at the beginning of each year. 2. Ownership does not transfer at the end of the lease term, there is no bargain purchase option, and the asset is not of a specialized nature. 3. The building...
BACK NEXT Exercise 21A-13 b Ivanhoe Company leases a building to Walsh, Inc. on January 1, 2017. The following facts pertain to the lease agreement. 1. The lease term is 4 years, with equal annual rental payments of $4,196 at the beginning of each year. 2. Ownership does not transfer at the end of the lease term, there is no bargain purchase option, and the asset is not of a specialized nature. 3. The building has a fair value of...
Image is clear but large, please zoom in with either Ctrl + or
the zoom feature in your web browser.
Exercise 21A-13 b Phelps Company leases a building to Walsh, Inc. on January 1, 2017. The following facts pertain to the lease agreement. 1. The lease term is 5 years, with equal annual rental payments of $4,703 at the beginning of each year. 2. Ownership does not transfer at the end of the lease term, there is no bargain purchase...
Sunland Company leases a building to Walsh, Inc. on January 1, 2017. The following facts pertain to the lease agreement. The lease term is 5 years, with equal annual rental payments of $4,068 at the beginning of each year. 1. Ownership does not transfer at the end of the lease term, there is no bargain purchase option, and the asset is not of a specialized nature. 2. The building has a fair value of $20,200, a book value to Sunland...
Oriole Company leases a building to Walsh, Inc. on January 1,
2017. The following facts pertain to the lease agreement. 1. The
lease term is 5 years, with equal annual rental payments of $3,937
at the beginning of each year. 2. Ownership does not transfer at
the end of the lease term, there is no bargain purchase option, and
the asset is not of a specialized nature. 3. The building has a
fair value of $19,500, a book value to...
+ Cullusobas Company leases a building to Walsh, Inc. on January 1, 2017. The following facts pertain to the lease agreement. 4 1. The lease term is 6 years, with equal annual rental payments of $3,137 at the beginning of each year. 2. Ownership does not transfer at the end of the lease term, there is no bargain purchase option, and the asset is not of a specialized nature. 3. The building has a fair value of $16,800, a book...
Your answer is partially correct. Try again. Laura Leasing Company signs an agreement on January 1, 2017, to lease equipment to Swifty Company. The following information relates to this agreement. 1. 2. 3. 4. 5. 6. The term of the non-cancelable lease is 3 years with no renewal option. The equipment has an estimated economic life of 5 years. The fair value of the asset at January 1, 2017, is $69,000. The asset will revert to the lessor at the...
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