osure requirements for lease by lesse 56. a. General Information about the lease b. A description of any residual value C. Restrictions imposed by the lease agreement d Al of th
Q: Between Absorption Costing and Variable Costing method, which one do you think is more practical to…
A: Absorption costing considers fixed manufacturing overheads and variable overheads together to find…
Q: Franklin Company established a predetermined fixed overhead cost rate of $36 per unit of product.…
A: Formula: Fixed cost spending = Budgeted fixed overheads - Actual Fixed overheads
Q: Using the MACRS rates from the following table, what is the book value of a $3,500 computer after 3…
A: Answer:- Book value:- In accounting, the book value is that value of an asset which is based on its…
Q: Husky Corporation is a general contractor which occasionally invests excess cash in debt securities.…
A: Journal Entries in the book of Accounts of Husky Corporation. Date Particulars Ref. Debit ($)…
Q: Data regarding a company's monthly sales for the last six months of the year and its projected…
A: Budgeted Cash receipts for September = (Budgeted credit Sales for August X 57%) + (Budgeted Sales…
Q: Rachel Warren, an auditor with Laplante CPAs, is performing a review of Skysong, Inc.’s inventory…
A: Inventory: Inventory is a short term asset of a company which can be transformed into liquid cash…
Q: Whitney's Legacy Tours in Moncton, New Brunswick offered 25% off a premium package that includes…
A: A Sale Discount is a reduction in the price of a product or service or both, offered by the…
Q: Dome Metals has credit sales
A: An account receivable is defined as it is money that has not been paid by customers after using the…
Q: A startup's accountant has just prepared the year-end income statement for its third year of…
A: Loss of the previous year will set off in the year of profit
Q: en 7 percent per y - stock.currently s
A: Yield to maturity is the current interest rate of the bond which is used for discounted the bond's…
Q: What are the assets needed by the jollibee for its daily operation?
A: Assets which are required for the day to day operations are the assets which are in the current…
Q: Insight on Business: Class Discussion Internet Sales Tax Battle Given the nature of the Internet,…
A: In the given case the services are being consumed at the place of residence of the consumer...In…
Q: How much is the primary balance?
A: Primary balance to the government is the balance which the government is having when all the…
Q: inventory of raw materials at 50% of the coming month's budgeted production needs. Each unit of…
A: To Determine the quantity of raw materials that are required to be purchased for June, the following…
Q: Setting objectives and identifying methods to achieve those objectives is calleda. planning.b.…
A: Planning entails the maintenance and organizational approach to reaching strategic goals. Managers…
Q: If Rita receives $39.24 interest for a deposit earning 6% simple interest for 110 days, what is the…
A: The amount of deposit can be calculated with the help of simple interest rate function
Q: Lemon Company bought a machine on January 1, 2019. The machine cost $72,000 and had an expected…
A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by…
Q: The following transactions took place during 2020 for Webb Industries.
A: Many organisations follow Allowance Method for writing off Accounts Receivable…
Q: You have been asked by the audit manager to undertake preliminary analytical procedures. a)…
A: Analytical Procedures It is important for the Auditors include the analytical procedures in the…
Q: 2) A purchase of equipment for $18 000 also involved freight charges of $500 and installation costs…
A: Formula: Straight line method = ( Asset value - Salvage value ) /Useful life years
Q: South Dakota Company budgets sales of 22,000 units for January and 30,000 for February. The budgeted…
A: Budgeted production = Total requirements - Beginning inventory Total requirements = Budgeted sales +…
Q: company issues 10,000 shares of $2 par value common stock at a market price of $30 per share, which…
A: Here company issued 10000 shares at market price of $30, par value of each share is $2
Q: Late in December 2021, XYZ Corp. (XYZ), a publicly traded company, completed the manufacture of 600…
A: Journal entry A journal entry refers to the recording of the transactions in the books of accounts.…
Q: Accumulated EAP at the beginning of the next year
A:
Q: Béğinning inventory, purchases, and sales data for tennis rackets are as follows: April 3 Inventory…
A: The inventory system may be perpetual or periodic. Under perpetual inventory system, the inventory…
Q: Is it really vital for a manufacturing company to prepare a budgeted income statement and balance…
A: A budgeted income statements statement that forecasts earnings, revenue, and expenses for the coming…
Q: Another team member who is preparing the Budgeted Balance Sheet for the business for the same…
A: The expected trade receivables and payables calculation help the company to manage its cash flow and…
Q: A business purchased a motor car on 1 July 20OX3 for $20,000. It is to be depreciated at 20 per cent…
A: The errors in accounting that affect the profit are called the error of commission and error of…
Q: Festus, capital
A: The available cash is given as,
Q: SALLAT Household Furnishings & Appliances is a family-owned business. You are the management…
A: Accounts Receivables: Accounts receivables indicates the amounts which a company has still get to…
Q: 6. In partnership liquidation the first cash distribution should be made for A) partner capital B)…
A: Answer:- Partnership liquidation meaning:- Liquidation of partnership takes place when partners…
Q: Sločk át 31 December 2015, 274,210. ii. Expenses to be accrued: Office Expenses GH¢215; Wages…
A: Income Statement The purpose of preparing the income statement is to know the net income which are…
Q: Arabica Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage…
A: The cost per unit can be calculated by dividing the total cost by total unit produced.
Q: tartup's accountant has just prepared the year-end income statement for its third operations. It has…
A: The losses in business can be carried forward for 8 years and can be adjusted against business…
Q: 2) Troy Ltd purchased a new machine on 1 October 2016 at a cost of $114,000. The entity estimated…
A: Formula: Straight line method depreciation = ( Asset cost - Salvage value ) / Useful life
Q: Sheffield Company manufactures deep-sea fishing rods, which it distributes internationally through a…
A: Given information: Actual machine hours for May [AH] 21870 hours Standard machine hours for May…
Q: a. Sampson Co. sold merchandise to Batson Co. on account, $20,100, terms 2/15, net 45. b. The cost…
A: 1)Journal entries in the books of Sampson co. : Sl. No General journal L.F Debit Credit a)…
Q: If Rose Gardens has the following capital weights for raising capital, determine the amounts that…
A: Rose Gardens is looking into raising $500,000. The company can raise the capital with any of options…
Q: (a) Prepare the adjusting journal entry to record bad debt expense for the year. (b) If the…
A: Solution:- Preparation of journal entries as follows under:-
Q: Sherman Charter signed a four-month note payable in the amount of $18,000 on September 1. The note…
A: Note: Adjusting entry on September 30 will be made to record the accrued interest for the period…
Q: a) On January 1, 2022, Dymaxium Inc. a Canadian company, sold Alberta beef to a foreign company for…
A: The forward contract is based on the amount it will receive on March 1, 2022, on which the spot rate…
Q: a. Using the above information, compute the Net Present Value (NPV) if the company delayed the…
A: Cost of the project 100 Million Life of the project 3 years High- Demand…
Q: Last week, 13 Mexican pesos could purchase one U.S. dollar. This week, it takes 11 Mexican pesos to…
A: The change in the exchange rate of one currency with another currency influences the purchasing…
Q: The centrepiece of a job-costing system is the: Oa uogeted overhadrate job-cost sheet 0 labour tme…
A: The job order costing is used to complete an order for a particular job.... This sheet is useful to…
Q: Explain at least four significant differences between the two majority parties: the Republican and…
A: The Republican Party, also known as the GOP ("Grand Old Party"), is one of the two largest political…
Q: Payback, Net Present Value, Internal Rate of Return, Effects ofDifferences in Sales on Project…
A: The computation of given is shown as,
Q: Tust Born Quality Confections (Just Born) makes marshmallow Peeps, Mike and amales, and other…
A: given Just Born Quality Confections (Just Born) makes marshmallow Peeps, Mike and Ikes, Hot…
Q: Incorporating Stakeholder Impacts into Business SustainabilityAnalyses and DecisionsJack’s Apps…
A: A good growing company is one that is constantly bringing invitations and carrying out necessary…
Q: 3-July Purchased land for golf course, put 10% down and agreed to pay the balance in six months, by…
A: Introduction: Journal entries: Recording of a business transactions in a chronological order. First…
Q: Mark borrowed an amount of P8,830 from Brian and after 2 years, he borrowed again an amount of…
A: Compound interest (or compounding interest) is the interest on a loan or deposit calculated based on…
Step by step
Solved in 2 steps
- (48) If, as part of the accounting for a lease, the lessee debits an asset and credits a liability, then the lease must be a(n): A. Finance Lease B. Operating Lease C. Operating lease or finance lease D. none of the above23. Which of the following is true regarding IFRS 16? * a. Lessors shall recognize assets held under a contract of lease as a receivable at an amount equal to the net investment in the lease. b. Lessors shall recognize assets held under a contract of lease as a receivable at an amount equal to the cost of the asset which is the subject of the lease. c. Lessors shall recognize assets held under a finance lease as a receivable at an amount equal to the net investment in the lease. d. Lessors shall recognize assets held under a finance lease as a receivable at an amount equal to the cost of the asset which is the subject of the lease less any initial direct cost paid by the lessor.IFRS(a) What is included in the measurement of (1) the lease liability and (2) the right-ofuse asset?(b) Besides the non-cancelable term of the lease, what are other considerations indetermining the “lease term”?(c) When should a lessee account for a lease modification? What procedures arefollowed?
- 45. In a lease that is recorded as a sales-type lease by the lessor, interest revenue should be recognized over the period of the lease using the straight-line method. should be recognized over the period of the lease using the effective interest method. does not arise. should be recognized in full as revenue at the lease’s inception.(4) In a lease that is appropriately recorded as a direct-financing lease by the lessor, unearned income A. should be amortized over the period of the lease using the effective interest method. B. should be amortized over the period of the lease using the straight-line method. C. does not arise. D. should be recognized at the lease's expiration. E. None of these answer choices are correct.26 If title is not expected to pass to the lessee by the end of the lease term, lease of land is classified asA. operating lease.B. either operating lease or finance lease.C. finance lease.D. neither operating lease nor finance lease.
- 44. The right-of-use asset is increased by lease prepayments made by the lessee and initial direct costs incurred by the lessee. lease incentives received. initial direct costs incurred by the lessee only. prepaid lease payments only.D6) Describe the criteria that the lessee must utilize when determining whether a lease is to be treated as a finance lease or as an operating lease according to ASC 842. Original answer.27 In IFRS 16 par. 74, initial direct costs incurred by a lessor in consummating a manufacturer’s or dealer’s lease areA. charged to unearned income in the first period of the lease term.B. charged to expense in the first period of the lease term.C. deferred and allocated over the lease term in proportion to the recognition of rent revenue.D. deferred and allocated over the lease term on a straight-line basis.
- Which of the following statements is correct in accordance with AASB 16 Leases? Group of answer choices A lease contract, or part of a lease contract, conveys the right to transfer ownership of an asset for a period of time in exchange for consideration. Payments that are made by a lessee at commencement date are included in the initial amount recognised for the lease liability. Payment for executory costs reimbursed by the lessee after being paid by the lessor on behalf of the lessee are included in the calculation of lease payments. Variable lease payments may be increased or decreased during the lease term because of changes in facts and circumstances occurring after the asset is made available to the lessee to use, other than the passage of time.29 Lessors shall recognize assets held under a finance lease in a statement of financial position as a receivable at an amount equal to theA. gross investment in the lease B. net investment in the lease C. gross rentals D. residual value, whether guaranteed or unguaranteed28 Which one of the following is a correct statement of one of the indicators of a finance lease?A. The lease transfers ownership of the property to the lessor.B. The lease contains a purchase option.C. The lease term is for the major part of the economic life of the leased property.D. The minimum lease payments (excluding executory costs) equals or exceeds 90% of the fair value of the leased property.