On January 1, 2022, Edward Corporation (lessor) enters into a ten-year lease of equipment to Kirk Corporation (lessee). The equipment has estimated useful life of 15 years. Lease payments are P380,000 per year all payable at the beginning of each year. The fair value of the leased asset on this date P3,132,161. The rate implicit in the lease is 6%. Kirk Guaranteed a residual value of P300,000. How much interest income should Edward recognized in its December 31, 2022 statement of comprehensive income?

Q: b. How do you think accounting irregularities affect the pricing of corporate stock in general? From…

A: ACCOUNTING IRREGULARITIES:  It is an entry or statement that does not conform to the normal rules of…

Q: This revenue recognition method applies when the customer wants to make payments in portions and the…

A: 1-Installment method Installment method refers to the method under which there is arrangement…

Q: Ryan is single and 50 year old. of the account before the distribution was $40,000. He distributed…

A: Here asked for multi question we will solve for first three sub part question for you.  If you need…

Q: e Active Auditor display?

A: The Active Auditor is an auditor who shows a list of audit messages that are related to the…

Q: On January 1, 2015, Oxford Company finished consultation services and accepted in exchange a…

A: As per Accounting standards for revenue recognition, service revenue should be recorded when…

Q: Wynn Farms reported a net operating loss of $280,000 for financial reporting and tax purposes in…

A: Solution 1: Net Operating loss carryback Amount Rate of Tax Tax Recorded as Carried back - 2017…

Q: Current ratio Debt Ratio 0 33 TIE 05

A: The current ratio is the ratio that tells about the relationship between the current assets and…

Q: Tri-State Bank and Trust is considering giving Swifty Company a loan. Before doing so, management…

A: Introduction: Inventory is a type of asset that is used to be sold in the business. Inventory may…

Q: A measure frequently used to evaluate the performance of the manager of an investment center is the…

A: Investment center is a segment within an organization with funds are allocated to each segment. The…

Q: On January 1, 2019, company acquired 2,000,000 face amound bonds dated January 1, 2022. The bonds…

A: Introduction' Bond is a investment securities that is issued by company where investors lends money…

Q: Which one of the following statements is correct? a. If NPV is positive, IRR will be less than…

A: In order to determine the Net present value, the initial cash outflows is required to be subtracted…

Q: Brianna (resident citizen), earning compensation income and from self-employment, provided the…

A: Here discuss about the details of business tax due and its total amount of tax which are payable…

Q: Exercise 3-5. Distribution of Net Income Luz, Olivia, Vera, and Ethel are partners of LOVE Trading…

A: The partnership comes into existence when two or more persons agree to do the business and further…

Q: 2 of 3 Excitingpart's Closet Statement of Financial Position As of Nov. 30, 2015 Dec. 31, 2014…

A: Note: Hi! Thank you for the question, As per the honor code, we are allowed to answer three…

Q: For NPOs, cashflows in the statement of cash flows are classified into Group of answer choices…

A: A cash flow statement is a financial statement that provides aggregate data regarding all cash…

Q: Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based…

A: The overhead cost is assigned to different products on the basis of predetermined overhead rate.

Q: What amount should be reported as basic earnings per share?*   7.33 6.00 5.50 5.00  2. What…

A: Basic Earnings per share is the earning per one share of common stock outstanding while as the…

Q: nancial income P400,000 Estimated litigation expense 1,000,000 Installment sales (800,000)…

A: Income tax refers to the mandatory charge levied by the government over the income gained by an…

Q: A vaccine marketed by a drug company has a known and constant demand of 1,200 units per year (or 100…

A: Given information, Annual demand(D)=1,200 units Setup costs(S)=$2,400  Holding costs(H)=$144…

Q: Peter's Records purchases a new desktop computer for $8,900, on the 1st January 2020 The computer is…

A: Straight line rate = 1 / useful life = 1 / 5 = 20% Reducing balance rate = 2 x 20% = 40%

Q: Sarah moves to Germany on July 15. Of the current year, she is 35 and has lived in Canada all her…

A: Introduction: The legal position of a foreign national in a country where he or she is not a citizen…

Q: The owners want to understand these numbers and how they can use the information to run the…

A: Absorption costing is also known as Full costing, absorption costing is a conventional technique of…

Q: Vhich of the following statements about adjusting for accruals is false? It will increase the values…

A: The accrued expenses are the expenses incurred but not paid yet. The accrued revenue is the revenue…

Q: 4. The following investment portfolio of equity securities (all acquired during 2019) accounted for…

A:

Q: In an audit of financial statements for a company, the auditor considers internal control a. To the…

A: Audit refers to the examination or checking of the financial statements or the books of company in…

Q: Pension data for Barry Financial Services Inc. include the following: ($ in thousands) Discount…

A: Pension Expense: Pension Cost is a measure of the yearly cost to a business of maintaining a pension…

Q: journal entries

A: A bond is an acknowledgment by the borrower to pay a certain sum of money to the lender of money.…

Q: On December 31, 2020, GHI Corporation holds 50,000 shares of Harry Company with market value of…

A: Unrealized gain means the upsurge in the worth of an asset or security which is yet to sold for…

Q: Bed & Bath, a retailing company, has two departments-Hardware and Linens. The company's most recent…

A: A contribution margin income statement subtracts all variable expenses from sales to calculate the…

Q: Morganton Company makes one product and it provided the following information to help prepere the…

A: A production budget is prepared to assess the number of units to be produced during a specific…

Q: Company 2019 Gross $4,250,000 Revenue Company 2019 Gross $1,6,000 Profit Annual Retention Rate 58%…

A: Based on the data given we need to calculate the average life time value of a customer. Firstly let…

Q: At January 1, 2021, Canaday Corporation had outstanding the following securities: 660 million…

A: As evidence of their participation in a company, common shares are issued to business owners and…

Q: In deciding upon the acceptable risk of incorrect acceptance for an account, an auditor considers…

A: Auditing is the procedure of finding the errors and misstatements presented in the financial…

Q: A company's bank statement shows $715 direct debits and $353 investment income not recorded in the…

A: The bank reconciliation statement is prepared to equate the balances of cash book and passbook with…

Q: On December 31, 2020, DEF, Inc. holds 100,000 shares of Devin Company with market value of…

A: Gain or loss is the amount of money gained or lost on investment. If the money invested give more…

Q: On June 30, 20x1, Cockroach Co. acquired 75,000 of Nymph Co.'s 100,000 outstanding equity shares…

A: Consolidation In the consolidation Parent company acquired more than 50% shares of the subsidiary…

Q: Nancy and Betty enter into a partnership agreement whereby they undertake to share profits according…

A: Partnership means the form of business where two or more person joins together to run the business…

Q: Accounting Wildhorse Co. sells $462,000 of 10% bonds on March 1, 2020. The bonds pay interest on…

A: Given, Market rate for semi-annual interest payments=12%2=6%Term of bonds=3.5 years×2=7 terms

Q: Brown Printing, a small family-owned business, began operations on March 1, manufacturing premium…

A: Solution:- 1)Definition and explaining the concept absorption and variable costing as follows…

Q: Prepare a balance sheet, assuming that the current portion of the note payable is $7,000

A: Balance sheet refers to a statement which provides a brief summary of the company’s Assets, Owner’s…

Q: O a. Current Ratio is worse, Quick Ratio is worse, Inventory Turnover is worse, Accounts Receivable…

A: Introduction:- Ratio analysis is used compare the line items present in the financial statements of…

Q: Mary Poppins plans to start a company and offers to sell 30,000 ordinary shares at a price of $2 per…

A: The total amount received from investor will include the application money received from 40,000…

Q: the pi "he CAPI he Gord The

A:

Q: An auditor's objectives in evaluating accounting estimates include all of the following except to…

A: Audit:   It is a procedure for examining a company's financial statements. The goal of auditing is…

Q: A non-profit university assessed its students P2,000,000 in tuitions and fees for the semester.…

A: It is assumed that the non-profit university follows the method of…

Q: Kanika's Tutoring Service incurred the following transactions: 2021 May 10 Received Cash from a…

A: The accrued interest is the interest due to be paid but not paid yet. It is recorded as current…

Q: 12. The Thomas Company has two service departments and two operating departments. The following data…

A: Cost allocation is a method of delivering relief to the cost centers of a common service…

Q: Q (B) Which of the following statements about central bank objectives are​ true?   A. Central…

A: Central banks play a crucial role in ensuring economic and financial stability. They conduct…

Q: If you invest $45,000 in the market index and $30,000 in a risk free investment what is the beta…

A: Market index funds always has a beta of 1. Risk free investment always has a beta of 0.

Q: For the next (2) two questions: STU Company purchased 10,000 shares representing 2% ownership of…

A: The journal entries can be defined as the base of accounting because the business transaction is…

Leasing

Leasing is a contractual arrangement in which someone (a lessee) pays the owner (or lessor) of a building, land, vehicle, or other asset for the use of that asset. The lease is the agreement between lessee and lessor.