Under US GAAP, It is possible that the lessor changes the lease classification from operating lease to sale-t way around) when the lease term is modified.
Q: The firm is formed to purchase and operate a vehicle. The purpose of the vehicle is to operate a ta...
A:
Q: 2. Mala-Inse Company needs P5,000,000 short-term credit for 90 days. To produce the amount, the comp...
A: The fees and other expenses spent by the Corporation when borrowing funds are referred to as financi...
Q: Assume the following year 2 income statement for Johnstone Corporation, which was a C corporation in...
A: Information given in the given case are as follows: Sales Revenue for year 2 of S Corporation is $17...
Q: Exercise 3.4 · Balance Sheet Based on the following information, prepare a balance sheet. Note: Some...
A: Financial statement means the statement including income statement , balance sheet , cash flow state...
Q: Compañía CSB, S.A., requires short-term financing and requests a loan from Banco del Comercio, and p...
A:
Q: 4. Estrada V. Escritor sells on terms 3/10, net 30. Total sales for the year are ₱2,539,130. Forty ...
A: Accounts receivables are those customer accounts to whom business has made credit sales on account a...
Q: Given the following information calculate: Value B. gross cost of merch sold: Cost Retail $80,000.00...
A: Cost of Goods Sold: The term "cost of goods sold" (COGS) refers to the direct expenses incurred by a...
Q: Choices P19,000 P25,000 P31,000 P34,000
A: Depreciation is a cost charged over the fixed assets for over a period of time. Fixed Assets are the...
Q: Problem #10: Standard Costing & Variances Jake’s Cheese Company produces gourmet cheese for resale ...
A: Labor rate variance and Labor efficiency variance calculate the favorable (unfavorable ) variances o...
Q: Giannitti Corporation bases its predetermined overhead rate on the estimated machine-hours for the u...
A: Predetermined overhead rates are used to allocate the indirect cost. It can be allocated on the basi...
Q: 20 A credit to the account Cash-MDS Regular will most likely be recorded in what journal? Group o...
A: Cash MDS regular account is one of the cash account which is maintained in the assets side of the ba...
Q: QUESTION 15 During the year, Proffitts, Inc., had revenue of $83,000 and expenses of $26,000. During...
A: Revenue = $83000 Expenses = $26000
Q: ccounts for January, the amount to be accrued for wages would be: a. $500 b. $1 000 c. $1 500 d. $2 ...
A: Given that, For a 5 day work week, wages is $2500 That implies, for one day = $2500/5 = $500 The pay...
Q: -cancelable lease agreement between Faldo Leasing Company and Pina Company, a lessee. Commencement...
A:
Q: What annual deposit is required for 5 years to accumulate an amount of money with the same purchasin...
A: Answer) Calculation of amount of annual deposit required to accumulate P 1,000 after the end of 5 ye...
Q: The heading is the same on all three financial statements. True or false?
A: Solution Concept Heading in the financial statements There are basically three major...
Q: Selected data concerning the past year's operations of the Beachwear Manufacturing Company are as fo...
A: A. Cost of goods manufactured - Cost of Goods Manufactured is the total cost incurred to manufacture...
Q: For the following, prepare a correcting entry, showing your work. Your final answer must be ONE jour...
A: Promissory Note: A promissory note is a marked record containing a composed guarantee to pay an expr...
Q: True or false: When the parent acquired 100 percent of the subsidiary’s stock for book value duri...
A:
Q: Presented below is an income statement for Kinder Company for the year ended December 31, 2022. Kind...
A: The question is based on the concept of Financial Accounting.
Q: Differentiate Private from Public Accountants?
A: Accountants are the professionals that are engaged in the work related to accounting and taxation of...
Q: ys operated it as a C corporation. However, at the beginning of this year, Connor made a qualifyin o...
A: b. It is required to compute the amount and nature gain that C would recognize if he received $60,00...
Q: ne 30, 201g, Roddick Company had a cash balance in its general ledger of $11,595. The company's bank...
A: Solution: A bank reconciliation is the internal control system by which the bank account balance in ...
Q: Activity 2: Identification Directions: Identify the accounting principles that are being violated in...
A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts f...
Q: s
A: Auditing refers to the process when an auditor physically checks all the facts and figures of a comp...
Q: 9.Hong Kong Clothiers reported revenue of $5,150,000 for its year ended December 31, 2021. Accounts ...
A: Answer - Cash collected from customers = Sales Revenue + Opening Account Receivable - Closing Accou...
Q: 9.Hong Kong Clothiers reported revenue of $5,150,000 for its year ended December 31, 2021. Accounts ...
A: The Cash flow from operating activities is one of the vital part to study for any company as it tell...
Q: Which of the following techniques can be used by management to overstate long-lived assets? * A. Al...
A: Long lived assets are also known as Non-current assets which provides economic benefits for a period...
Q: Hemlock Company developed the followin
A: Direct Labor Cost: wages and payroll costs incurred in manufacturing activity. Examples are Wages an...
Q: Pine Corporation, a calendar-year corporation, was formed three years ago by its sole shareholder, C...
A: Introduction:- A dividend is a payment given to stakeholders by a corporation. When a firm makes a p...
Q: Pixel Studio, Incorporated, is a small company that creates computer-generated animations for films ...
A: Solution 1: Computation of cost of serving Local commercial market Particulars Amount Animat...
Q: Discuss weaknesses in the public sector accounting and finance in the usage of resources that might ...
A: Accounting in the public sector is a distinct specialty with its own set of qualifications. The Char...
Q: The Hilton's manufacturing company uses job order costing system. The company uses machine hours to ...
A:
Q: 3. Consider the following two statements concerning share issues: Statement (1): Retained profits a...
A: Retained earnings is the profit retained in the company after paying dividend to its shareholders. I...
Q: Based on the following information, prepare a cost of goods manufactured statement. Material purchas...
A: Material used = Beginning material inventory + material purchases - Ending material inventory Cost o...
Q: The unadjusted trial balance for Lamb Company at December 31, 2022 is as follows: LAMB COMPA...
A: Adjusting Entry – Adjusting Entries are the entries that make the accrual principle work for the org...
Q: Expense approach. Required: Prepare the journal entries required for 2020 using the Expense approach...
A: Journal entries refer to the process of collecting and documenting all the data of a company in its ...
Q: Pine Corporation, a calendar-year corporation, was formed three years ago by its sole shareholder, C...
A: Shareholder refers to the entity that holds at least one share of the stock of company.
Q: Assume that DBP Leasing Corp. and Minasugbo Inc. sign a lease contract effective on January 1, 2019 ...
A: DBP leasing leases to Minasugbo a bulldozer. Therefore, Lessor= DBP leasing Lessee= Minasugbo The r...
Q: Herbert and Ireneo are partners sharing profits and losses in the ratio of 60 % and 40% , respective...
A: When a new partner is admitted into a partnership firm then the profit sharing ratio of the existing...
Q: Question #4: Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales data for por...
A: GIVEN Beginning inventory, purchases, and sales data for portable game players are as follows: ...
Q: ll business decisions have a on people. Oapplication O risk O effect recourse
A: Solution Concept Every business is operated on the society and it largely is affected by the society...
Q: Macy's was selling Calvin Klein jean shirts that were originally priced at $41.00 a. What was the am...
A: Amount of markdown is the difference between original selling price and actual selling price. Markdo...
Q: Pleasant Heating & Cooling (PHC) Co. manufactures furnaces and air conditioners that are in great de...
A: The organization must identify performance obligations in the contract at the beginning of the contr...
Q: Mala-Prohibita Company has annual credit purchase of P720,000 with a usual term of 3/10, net 35. The...
A: Formula: Cash discount = Annual credit purchases x Discount rate
Q: hat does equivalent units of production (EUP) mean, and why is it necessary for it to be correct?
A: Equivalent units of production (EUP) is a managerial accounting computation that estimates the numbe...
Q: Under accrual basis, what amount should be reported as gross sales for the current year?
A: Gross sales are those sales which the company has made during the year which is in gross means the s...
Q: Conduits made of Steel First Cost ...
A: Fist cost (C0) = Php 80,331 Life (n) = 40 Years Annual cost (P) = Php 237 Interest rate (r) = 0.074
Q: Statement of Cash Flow Preparation Activity Consider the following journal entries: Entry |(a) cash ...
A: All 11 transactions denoted by their sequence no.s are explained in Step 2 that in which Cash Flow t...
Q: Susan Carrie is planning to sell her special pottery for $25 per unit. She purchases units from a lo...
A: The breakeven point is the level of production at which a product's costs equal its revenues. The br...
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- What is a substitution right, and when does that right result in a contract not being a lease?Use the following information to decide whether this equipment lease qualifies as an operating, sales-type, or direct financing lease to a lessor. a. There is no transfer of ownership at the end of the lease term. There is no bargain purchase option. The lease term is 60% of the economic life of the leased property. The present value of lease payments, including a residual value guaranteed by the lessee, is 100% of the fair value of the leased property to the lessor. The collectability of the lease payments is reasonably assured. The leased asset was not of a specialized nature. b. Same as (a), except that the residual value is guaranteed by a third party, not the lessee. The present value of the residual value guarantee is 15% of the fair value of the leased property. c. Same as (a), except that: the present value of the lease payments, including a residual value guaranteed by the lessee, is only 50% of the fair value of the leased asset. The collectability of the minimum lease payments is not predictable.When a sale-leaseback transaction occurs, if the leaseback is considered to be an operating lease, and the lease payments and sales price are at fair value, any gain on the sale a. Is amortized over the lease term by a company using IFRS. b. Is recognized immediately by a company using IFRS. c. Is amortized over the lease term by a company using either U.S. GAAP or IFRS. d. Is not recorded by a company using IFRS.
- Under ASC 842 If the present value of the lease payments is less than or equal to the fair value of the asset the lessor must classify the lease as a direct financing lease. True FalseUnder US GAAP, a lessor’s reported revenues at lease inception will be highest if the leaseis classifi ed as:A . a sales-type lease.B . an operating lease.C . a direct fi nancing lease.Occasionally, a lease agreement includes a guarantee by the lessee that the lessor will recover a specified residual value when custody of the asset reverts back to the lessor at the end of the lease term. Under what circumstance can the guaranteed residual value influence the amounts recorded by the lessee and lessor? In that circumstance, how are the amounts affected?
- Packer Company (the lessor) concludes that its lease meets one of the tests to be classified as a sales-type lease. However, collection of lease payments is not probable. In this case, how should Packer account for any lease payments received?For a lessor, the leased asset appears on the balance sheet and continues to be depreciatedwhen the lease is classifi ed as:A . a sales-type lease.B . an operating lease.C . a fi nancing lease.Which of the following statements are false under a sale a leaseback transaction? I. If a sale and leaseback transactions results in a finance lease, any excess of proceeds over the carrying amount shall not be immediately recognized as income by a seller-lessee. Instead, it shall be deferred and amortized over the lease term. II. If the sale price is established at fair value under an operating lease, any gain or loss shall be deferred and amortized over the period which the asset is expected to be used. I only II ONLY BOTH I AND II NEITHER I OR II
- Asnwer true or false In a sale and leaseback transaction that qualifies as a sale under PFRS 16, the seller-lessee recognized only the amount of any gain or loss that relates to the rights transferred to the buyer-lessor The lessor uses the implicit interest rate in determining the present value of the lease payments When rental payments vary over the term of the operating lease, the lessor should recognize lease income on a straight-line basis, unless there is another method that is more appropriate Under an operating lease, the lease bonus paid by the lessee to the lessor and amortized over the lease term as a reduction to lease income.The situation which would normally lead to a lease being classified as afinance lease include all of the following, except A. The lease transfers ownership of the underlying asset to the lessee at the end of the lease term. B. The lessee has the option to purchase the asset at a price which is expected to be sufficiently higher than the fair value at the date the option becomes exercisable. C. The lease term is for the major part of the economic life of the underlying asset even if title is not transferred. D. The present value of the lease payments amounts to substantially all of the fair value of the underlying asset at the inception of the lease.A lease agreement will qualify as a finance lease if one of these conditionsoccur: A. The lessee returns the leased property to the lessor at the end of the lease term.B. The lease does not have a bargain purchase option.C. The lease term is for major of the economic life of the asset.D. The present value of the minimum lease payment amounts to substantially less than the fair value of the leased asset.