Save & ExitCheck mManufacturers Southern leased high-tech electronic equipment from International Machines on January 1, 2021. International Machinesmanufactured the equipment at a cost of $85,000, Manufacturers Southern's fiscal year ends December 31. (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 provlded.)Related InformationtLease term2 years (8 quarterly periods)$15,000 at the beginning of each periodQuarterly rental paymentsEconomic life of assetFair value of assetImplicit interest rate2 years$112,08088Required:1. Show how International Machines determined the $15,000 quarterly lease payments.2. Prepare appropriate entries for International Machines to record the lease at its beginning, January 1, 2021, and the second leasepayment on April 1, 2021.Complete this question by entering your answers in the tabs below.Required 1Required 2Show how International Machines determined the $15,000 quarterly lease payments. (Round your Intermediate and finalanswers to the nearest whole dollar.)PV factors based onTable or Calculator function:PV of LeaseTeoco Dovmant26 of 33Next >PrevIMG-0582.jpgIL I

Solution 1: PV Factor based on Table or Calculator function PVAD of $1 PV of lease $1,12,080…

Answered: Manufacturers Southern leased high-tech…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 43E

See similar textbooks

Similar questions

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 $127,024. (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 $17,000 at the beginning of each period Economic life of asset 2 years Fair value of asset $127,024 Implicit interest rate 8% (Also lessee’s incremental borrowing rate) Required:Prepare a lease amortization schedule and appropriate entries for Manufacturers Southern from the beginning of the lease through January 1, 2022. Amortization of the right-of-use asset is recorded at the end of each fiscal year (December 31) on a straight-line basis.
Ballie Power leased high-tech electronic equipment from Courtney Leasing on January 1, 2021. Courtney purchased the equipment from Doane Machines at a cost of $252,500, its fair value. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1, and PVAD of $1) Related Information: Lease term 2 years (8 quarterly periods) $17,500 at Jan. 1, 2021, and at Mar. 31, June 30, Sept. 30, and Dec. 31 Quarterly lease payments thereafter Economic life of asset 5 years Interest rate charged by the lessor. 12% Required: Prepare a lease amortization schedule and appropriate entries for Baillie Power from the beginning of the lease through December 31, 2021. December 31 is the fiscal year end for each company. Appropriate adjusting entries are recorded at the end of each quarter.…
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 $127,024. (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 $17,000 at the beginning of each period Economic life of asset 2 years Fair value of asset $127,024 Implicit interest rate 8% (Also lessee’s incremental borrowing rate) Required:Prepare a lease amortization schedule and appropriate entries for Edison Leasing from the beginning of the lease through January 1, 2022. Edison’s fiscal year ends December 31.
Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2024. Edison purchased the equipment from International Machines at a cost of $139,107. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Related Information: Lease term 2 years (8 quarterly periods) Quarterly rental payments $ 18,000 at the beginning of each period Economic life of asset 2 years Fair value of asset $ 139,107 Implicit interest rate (Also lessee’s incremental borrowing rate) 4% Required: Prepare a lease amortization schedule and appropriate entries for Edison Leasing from the beginning of the lease through January 1, 2025. Edison’s fiscal year ends December 31
On July 2, 2020, Covenant Construction London's area's dedicated general contractor purchased a 312GR Skid Steer (i.e., construction equipment). Covenant traded in equipment with a book value of $2,000 (initial cost $40,000) and paid $50,035 in cash one month after the purchase. The old equipment could have been sold for $9,535 at the date of the trade but was accepted for trade-in allowance of $9,500 on the new equipment. (This is all the information) a) Prepare all journal entries you consider necessary relating to the above information. Round to the nearest dollar.
Manufacturers Southern leased high-tech electronic equipment from International Machines on January 1, 2021. International Machines manufactured the equipment at a cost of $92,000. Manufacturers Southern's fiscal year ends December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Related Information: Lease term 2 years (8 quarterly periods) Quarterly rental payments $18,000 at the beginning of each period Economic life of asset 2 years Fair value of asset $134,496 Implicit interest rate 8% Required:1. Show how International Machines determined the $18,000 quarterly lease payments.2. Prepare appropriate entries for International Machines to record the lease at its beginning, January 1, 2021, and the second lease payment on April 1, 2021.
Baillie Power leased high-tech electronic equipment from Courtney Leasing on January 1, 2024. Courtney purchased the equipment from Doane Machines at a cost of $251,000, its fair value. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Related Information: Lease term 2 years (8 quarterly periods) Quarterly lease payments $16,000 on January 1, 2024, and on March 31, June 30, September 30, and December 31 thereafter Economic life of asset 5 years Interest rate charged by the lessor 4% Required: Prepare a lease amortization schedule and appropriate entries for Baillie Power from the beginning of the lease through December 31, 2024. December 31 is the fiscal year end for each company. Appropriate adjusting entries are recorded at the end of each quarter.
Baillie Power leased high-tech electronic equipment from Courtney Leasing on January 1, 2021. Courtney purchased the equipment from Doane Machines at a cost of $258,000, its fair value. (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 lease payments $23,000 at Jan. 1, 2021, and at Mar. 31, June 30, Sept. 30, and Dec. 31 thereafter Economic life of asset 5 years Interest rate charged by the lessor 8% Required:Prepare a lease amortization schedule and appropriate entries for Baillie Power from the beginning of the lease through December 31, 2021. December 31 is the fiscal year end for each company. Appropriate adjusting entries are recorded at the end of each quarter.
i) Company X Financial Year ends March 31. A laptop purchased 02 August 2018 at a cost of P9,500 was disposed off in January 2020 for P6800. Assuming the organisation follows local GAAPS on depreciation, provide the Journal Entries for this transaction. Outline all assumptions used. (ii) The following in being considered: Purchase of an office building worth P1M from unrestricted funding. Currently, the office building is on a 2-year lease, with rentals of BWP22,000 per month. 11 Provide your recommendations to the Finance Manager. What would be the possible effect on the Financial Health of the organisation if these transactions are approved (iii) List any key financial controls for an NGO and why these are important. (iv) Company X’s year-end is March 31. It is now April 4. A staff member asks you to process an unpaid invoice with details as follows: The invoice is for bus transportation in the amount of P800 and is dated April 2. The invoice indicates the charges relate to…
2. On January 10, 2021, Halo-Halo Enterprises had an equipment with a carrying amount of P2,000,000. On the same day, the entity classified the equipment as held for sale with an estimated selling price of P1,900,000 and disposal cost of P100,000. The remaining life of the equipment is for 5 years. On December 31, 2021, the estimated selling price of the equipment had increased to P2,200,000 with estimated selling costs of P50,000. What amount should be reported as gain on reversal of impairment in 2021?
Sony Inc. is a lessor-manufacturer of expensive machinery. On January 1,2011, amachinery is leased to another entity with the following information:Annual rental payable at the end of each year P200,000Lease term 4 yearsUseful life of machinery 5 yearsCost of Machinery 300,000Estimated residual value 50,000Initial direct cost paid by lessor 20,000Incremental borrowing rate of lessee 14%Implicit interest rate of lessor known to lessee 12%Note: At the end of the lease term on December 31,2014, the machinery will revert to lessor.Problem 17. Except from the fact that the leased machinery will not revert to lesser because there is bargain purchase option of P50,000 at the end of lease term.Required: Based on the result of your audit, determine the following:____________1. Gross Lease Receivable____________2. Sales or Net Investment____________3. Unearned Interest____________4. Profit on saleDirect Finance Lease – Lessor (PAS 17 and PFRS
On December 31, 2021, Trixie Company sold a machine to another entity and simultaneously leased it back for one year. Pertinent information at this date follows: Sale Price-3,600,000, Carrying Amount-3,300,000, Present value of reasonable rentals-341,000, Estimated remaining useful life of machine-12 years. What amount of revenue from sale of the machine should be reported in 2021? 341,000 300,000 41,000 0

Recommended textbooks for you

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

SWFT Comprehensive Volume 2019

Accounting

ISBN:

9780357233306

Author:

Maloney

Publisher:

Cengage

SWFT Comprehensive Vol 2020

Accounting

ISBN:

9780357391723

Author:

Maloney

Publisher:

Cengage

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

SWFT Comprehensive Volume 2019

Accounting

ISBN:

9780357233306

Author:

Maloney

Publisher:

Cengage

SWFT Comprehensive Vol 2020

Accounting

ISBN:

9780357391723

Author:

Maloney

Publisher:

Cengage

SWFT Essntl Tax Individ/Bus Entities 2020

Accounting

ISBN:

9780357391266

Author:

Nellen

Publisher:

Cengage

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

SEE MORE TEXTBOOKS