Question

Assume that Lenovo(CHN) leased equipment that was carried at a cost of ¥ 150.000,000 to Sharon Swander Company. The term of the lease is 6 years beginning January 1,2015, with equal rental payments of ¥30.044,000 at the beginning of each year. All executory costs are paid by Swander directly to third parties. The fair Value of the equipment at the inception of the lease is ¥150.000,000. The equipment has a useful life of 6 years with no residual value. The lease has an implicit interest rate of 8%, no bargain-purchase option, and no transfer of title. Prepare Lenovo’s January 1. 2015.Journal entries at the inception of the lease.

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Accounting

Accounting Vs Bookkeeping

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: Blake furniture recently purchased new equipment for its plant. The list price of the equipment was ...

A: Depreciation means decrease in the value of an Asset overtime due to its wear and tear. It means the...

Q: . (Learning Objectives 1, 3: Apply GAAP for proper revenue recognition; accountfor sales discounts) ...

A: Journal entry: It refers to the recording of the transaction and event takes place in the business t...

Q: Med Labs has the following December 31 year-end unadjusted balances: Allowance for Sales Discounts, ...

A: Adjusting entries: These can be defined as the journal entries that are made in the company’s books ...

Q: Identify which of the following accounts would be included in a post-closing trial balance. Accounts...

A: Post-closing trial balance: Post-closing trail balances are showing balance after closing entries ha...

Q: Savannah, Inc. is a company that manufactures and sells a single product. Unit sales for each of the...

A:  

Q: The transactions in this problem are identical to those in E1–2, but now with a focus on Wildcat. Tr...

A: Given transactions are:  Wildcat’s Related Account1. Wildcat issues common stock of Falcon.         ...

Q: “In an EDI system, only the customer needs to verify that the order being placed is from a valid sup...

A: Electronic Data Interchange:   Electronic data interchange (EDI) is the channel between the compute...

Q: The base for inventory in a vertical analysis is:a. total current assets.b. inventory.c. total liabi...

A: Answer:   Option d.

Q: (Learning Objective 2: Compare inventory by three methods) SWAT Surplus beganMarch 2018 with 100 ten...

A: The cost of goods available for sale is as follows:

Q: What is the difference between delivery cycle time and throughput time? What four elementsmake up th...

A: Difference between delivery cycle and throughput time: The delivery cycle is a complete process from...

Q: Contractors Depot Co is an established builders’ merchant, and a new audit client of your audit firm...

A: Inherent risks are those risks that are prevailing in an organization before establishing any contro...

Q: A company’s Accounts Receivable balance at its December 31 year-end is $489,300, and its Allowance f...

A: Accounts receivable: Accounts receivable refers to the amounts to be received within a short period ...

Q: Bond Company reported the following inventory data:Year Inventory (in millions)2016201720182019$2,50...

A: Trend percentages: Method of examining financial information attained over an extended period usuall...

Q: Define operating budget

A: An operating budget comprises all things considered and costs over some stretch of time (regularly a...

Q: A corporation has 12,000 shares of $20 par stock outstanding that has a current market value of $150...

A: Stock split:   Stock split refers to the dividing one share into two or more shares, in order to mak...

Q: Total assets are $12.0 million, with $4.0 million being long-term assets. Current liabilitiesare $2....

A: Current ratio = Current assets / Current liabilities

Q: What are some of the functions of a state board of public accountancy?

A: Click to see the answer

Q: You have recently been hired as the assistant controller for Stanton Temperton Corporation, which re...

A: Deferred Revenue Deferred Revenue is also known as "unearned revenue". It basically refers to advan...

Q: Profit before tax for Juventus is estimated at $3,000,000 for the year ended June 30, 2019, during t...

A: Auditor is the person who is responsible for checking and verifying the truthfulness of the financia...

Q: Why is continuing education required to maintain certification?

A: Auditing is the process by which assertions made by management about financial transactions of a com...

Q: Discuss the importance of determining a firm cost of capital?

A: The cost of capital is of paramount importance when making the capital expenditure decisions. Cost o...

Q: Accounting Question

A: Journal Entries Journal entries are used to record the financial transactions and data of a company...

Q: Identify the normal balance (Dr for Debit; Cr for Credit) and type of account (A for asset, L for li...

A: Asset is a resource of a company from which economic inflows are expected to arise to the company. L...

Q: Identify each of the following as a (a) purpose of an internal control system, (b) principle of inte...

A: Internal control: Internal control is a process which ensures continuous reliability of accomplishme...

Q: A catalog company has hired you to computerize its sales order entry forms. Approximately 60 percent...

A: For the phone orders, if a customer has a customer number, it should be verified against a master fi...

Q: Why should responsibility for related transactions be divided among different departments or individ...

A: Internal control: Internal control is a process which ensures continuous reliability of accomplishme...

Q: Madison Corporation acquired a machine for $27,000 and has recorded depreciationfor two years using ...

A: Depreciation: Depreciation is a method of reducing the capitalized cost of long-lived operating asse...

Q: These account balances at December 31 relate to Sportplace, Inc.:Accounts Payable .....................

A: Stockholders’ equity: The claims of owners on a company’s resources, after the liabilities are paid ...

Q: Starts Inc. gathered the following data for use in developing the budgets for the first quarter (Jan...

A: Sales Budget : Sales budget is the first and basic component of master budget and it shows the expe...

Q: What is the difference between a sales discount and a purchases discount?

A: The term sales discount is used by the seller, and the term purchase discount is used by the purchas...

Q: Douglas and Son, Inc., uses the following process for its cash receipts: The company typically recei...

A: Click to see the answer

Q: Describe the audit opinion that should be given and explain why. a)When the client is not a going co...

A: Going concern assumption is a basic assumption used for the preparation of financial statements. Acc...

Q: please help me with  7.3  7.4 7.5  Thank you !

A: Introduction: Net income: Net income refers to the income resulted after deducting the expenses from...

Q: Identify each of the following terms or phrases as an accounting (a) principle, (b) assumption, or(c...

A: Time period is the accounting assumption.  

Q: The beginning inventory of the Designer Shoe Salon for August was 750 pairs of shoes. On the 9th, it...

A: Sales of a product can be find using the following formula:  Sales = Beginning inventory + Inventory...

Q: The general ledger of Pipers Plumbing at January 1, 2021, includes the following account balances:Ac...

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts fo...

Q: A retailer completed a physical count of ending merchandise inventory. When counting inventory, empl...

A: a. Ending inventory is understated by $3,000.

Q: What is meant by GAAP? Why should companies follow GAAP in reporting to external users?

A: Generally Accepted Accounting Principles (GAAP): Generally Accepted Accounting Principles are the ge...

Q: (Learning Objective 5: Apply GAAP for uncollectible receivables) The September 30,2019, records of W...

A: 1. Prepare Journal Entries in the books of W.P Comm :   The result of the above table is as follows...

Q: Accounting Question

A: Material Budget: Under this budget, we calculate the amount of the budgeted material cost, this cost...

Q: Identify the following users as either external users (E) or internal users (I). Directors

A: Users of information: Users of information can be classified as internal and external users. Interna...

Q: The following are the net cash flow estimates (in thousands of dollars) of the two (2) proposed proj...

A: i.  Capital Budgeting is the process which is used by companies to evaluate potential major projects...

Q: Prepare journal entries to record each of the following transactions. The company records purchases ...

A: Discount on payment made = Total amount due x rate of discount = $60,000 x 3% = $1,800

Q: Profit before tax for Juventus is estimated at $3,000,000 for the year ended June 30, 2019, during t...

A: Performance materiality is generally determined by dividing an item by the net earnings. A materiali...