(b)2 Your answer is partially correct.Use the information from part a. Assume that, on the same day the sale occurred, Bramble enters into an agreement to lease theequipment from Marin for 10 years with annual lcase payments of $66,306.38 at the end of cach ycar, beginning on December 31,2020. If Bramble has an incremental borrowing rate of 5% and the equipment has an economic useful life of 10 years, record anyjournal entries necessary for Bramble from the sale and leaseback of computer equipment in 2020. (Credit account titles areautomatically indented when the amount is entered. Do not indent manually. Round answers to 2 decimal places, eg. 5,275.25. Recordjournal entries in the order presented in the problem.)DateAccount Titles and ExplanationDebitCredit1/1/2012/31/20Interest ExpenseCash Respond to the requirements in each situation.Click here to view factor tables.(For calculation purposes, use 5 decimal places as displayed in the factor table provided.)(a)V Your answer is correct.On January 1, 2020, Bramble Inc. sold computer equipment to Marin Co. The sales price of the equipment was $512,000 and itscarrying amount is $413,000. Record any journal entries necessary for Bramble from the sale of the computer equipment in 2020.(Credit account titles are automatically indented when the amount is entered. Do not indent manually.)DateAccount Titles and ExplanationDebitCredit1/1/20Cash512,000Gain on Disposal of Equipment99000Equipment413,000eTextbook and Media

In case of Sale and lease back, if the lease is financial lease then no sale is recognized in the…

Use the information from part a. Assume that, on the same day the sale occurred, Bramble enters into an agreement to lease the equipment from Marin for 10 ycars with annual lcase payments of $66,306.38 at the end of cach ycar, beginning on December 31, 2020. If Bramble has an incremental borrowing rate of 5% and the equipment has an economic useful life of 10 years, record any journal entries necessary for Bramble from the sale and leaseback of computer equipment in 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 2 decimal places, eg. 5,275.25. Record journal entries in the order presented in the problem.)

Use the information from part a. Assume that, on the same day the sale occurred, Bramble enters into an agreement to lease the equipment from Marin for 10 ycars with annual lcase payments of $66,306.38 at the end of cach ycar, beginning on December 31, 2020. If Bramble has an incremental borrowing rate of 5% and the equipment has an economic useful life of 10 years, record any journal entries necessary for Bramble from the sale and leaseback of computer equipment in 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 2 decimal places, eg. 5,275.25. Record journal entries in the order presented in the problem.)

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

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

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

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 9P: During 2019, Ryel Companys controller asked you to prepare correcting journal entries for the...

See similar textbooks

Similar questions

A company sells a stove to a customer for a price of $2,000 which includes the installation. The fair value of the installation alone is $300 and the fair value of the stove alone is $1,800. The stove was delivered on October 1, 2020 and the installation occurred on October 15, 2020. The customer pays $1,850 on the date of the delivery and the balance on the date of the installation. What would the journal entry include on the date of the delivery of the stove? a Credit to Revenue of $1,714 a Debit to Unearned Revenue of $136 a Debit to Cash of $2,000 a Credit to Revenue of $1,800 A company sells windows to a customer for a price of $2400 which includes the installation of the windows. The fair value of the installation alone is $500 and the fair value of the Windows alone is $2000. The windows were delivered on September 1, 2020 and the installation occurred on September 15, 2020. What revenue is recorded on September 1? Group of answer choices $2,000 $440 $2,400…
On Jan 1,2020, Kim Co. supplies amounted to P2,500. During the year, thecompany purchased P1,200 worth of supplies. Because of some defects, theyreturned P300 to the suppliers. At year end, the supplies amounted to P1,800.What is the amount of supplies expense?
Presented below are the transactions of Weirdo Beauty Salon for the month of January. 2020 Jan. 5 Received P25,500 from various customers as salon income 7 Purchased salon equipment on account, P7,500 8 Bought salon chairs and reception table from Plums Trading on account, P12,000 10 Returned defective chair to Plums Trading valued at P1,000 11 Made partial payment to Plums Trading P2,500 12 Purchased salon supplies paying P3,000 cash 15 The owner, Ms. Matutina, invested a table worth P1,750 Required: (a) Prepare the journal entries. (b) Prepare the T-Accounts.
Presented below are the transactions of Weirdo Beauty Salon for the month of January. 2020 Jan. 5 Received P25,500 from various customers as salon income 7 Purchased salon equipment on account, P7,500 8 Bought salon chairs and reception table from Plums Trading on account, P12,000 10 Returned defective chair to Plums Trading valued at P1,000 11 Made partial payment to Plums Trading P2,500 12 Purchased salon supplies paying P3,000 cash 15 The owner, Ms. Matutina, invested a table worth P1,750 Required: (a) Prepare the journal entries. (b) Prepare the T-Accounts.USE MS EXCEL AND SHOW FORMULAS USED
Blossom Limited purchased a machine on account on April 1, 2021, at an invoice price of $365,470. On April 2, it paid $2,170 for delivery of the machine. A one-year, $4,120 insurance policy on the machine was purchased on April 5. On April 19, Blossom paid $7,580 for installation and testing of the machine. The machine was ready for use on April 30. (a) Determine the cost of the machine. Cost of the machine $__________
Use the following information for the next two (2) questions: On February 1, 2019, Fowl Company purchased machinery for P2,400,000 with a 10-year useful life and no residual value. On March 20, 2019, Fowl incurred repairs and maintenance cost to the equipment for P150,000. Fowl used the percentage of sales method is estimating doubtful accounts. Doubtful accounts are estimated to be 6% of sales in each quarter. In 2019, Fowl followed this procedure for the first three quarters. However, in the fourth quarter, Fowl determined that doubtful accounts expense for the year showed be P550,000 based on aging of accounts receivable. Following the calendar year, sales per quarter are: first quarter – P1,500,000, second quarter – P1,000,000, third quarter – P2,000,000, fourth quarter – P1,600,000. What total amount of expenses should be recognized in the first quarter? What total amount of expenses should be recognized in the fourth quarter?
On May 3, 2020, Eisler Company consigned 80 freezers, costing $500 each, to Remmers Company. The cost of shipping the freezers amounted to $840 and was paid by Eisler Company. On December 30, 2020, a report was received from the consignee, indicating that 40 freezers had been sold for $750 each. Remittance was made by the consignee for the amount due after deducting a commission of 6%, advertising of $200, and total installation costs of $320 on the freezers sold. Instructions a. Compute the inventory value of the units unsold in the hands of the consignee. b. Compute the profit for the consignor for the units sold. c. Compute the amount of cash that will be remitted by the consignee.
You were hired as a junior accountant at Byron Manufacturing Company. The followingtransactions relate to the company’s operations for the year 2020. A. On February 8, the company purchased raw materials from Cetal Company for $80,000 with related terms 2/10, n/30. Byron paid for this purchase on February 15. Purchases and accounts payable are recorded at net amounts. B. On March 1, the company purchased equipment for $500,000 from Machines and More Company. It paid $100,000 in cash and used a one-year, 7% note for the balance. C. On June 30, the company borrowed $200,000, by signing a one-year zero-interestbearing $240,000 note at FSC Bank. D. The company sells smart speakers at an average price of $15000. Each customer is offered a separate 5-year service type warranty contract of $1500. With this contract, the company would carry out periodic services and replace defective parts. During 2020, the company sold 40 smart speakers and 30 warranty contracts for cash. It estimates the…
SG Inc. has a branch in Boracay established on April 1, 2020. During the year 2020, SG shipped merchandise to the branch at billed price of P100,000 which was 25% above cost. At the end of the year, the branch reported sales of P160,000, operating expenses of P76,000 and a net income from operations of P12,000. The true net income of the branch was:
Yellow Company, a distributor of machinery, bought a machine from the manufacturer in November 2020 for P500,000. On December 30, 2020, the entity sold this machine for P750,000 under the following terms: 2% discount if paid within 30 days, 1% discount if paid after 30 days, or payabl e in full within ninetydays if not paid within the discount periods. However, the customer had the right to return this machine to Yellow Company if it was unable to resell the machine before the expiration of the ninety-day payment period, in which case the customer’s obligation to Yellow Company would be canceled. In the net sales for the year ended december 31,2020, what amount should be included for the sale of the machine? a. 750,000 b. 735,000 c. 742,500 d. 0
Use the following question to answer a question that follows. Lorato and Loago’s Trial Balance as at 31 December 2001 Dr Cr Capital accounts: Lorato 100000 Loago 50000 Current accounts: Lorato 200 Loago 600 Cash drawings for the year: Lorato 15000 Loago 10000 Freehold premises at cost 50000 Inventory at 1 January 2021 75000 Fixtures and Fittings at cost 15000 Purchases and purchase returns 380000 12000 Bank 31600 Sales and sales Returns 6000 508000 Accounts receivables and accounts payables 52400 33300 Carriage inwards 21500 Carriage outwards 3000 Staff salaries 42000 VAT 8700 Office expenses 7500 Provision for doubtful debts 2000 Advertising 5000 Discounts received 1000 Discounts Allowed 1200 Bad debts 1400 Rent and business rates 2800 Accumulated provision for depreciation offixtures and fittings 3000 720000 720000 At 31 December 2021:a. Inventory on hand was valued at P68, 000b.…
How to solve these? The following expenses were recognized by CBA Co., a retailer, during 2020: Interest expense: P120,000 Telephone expense: P95,000 Loss on sale of store equipment: P47,000 Legal fees: P74,000 Officers' salaries: P115,000. How much should CBA Co. report as general and administrative expenses for 2020? On May 1, 2020, GAL Co. purchased a short-term P2,000,000 face value, 9% debt instruments for P1,860,000 including the accrued interest and classified it as a trading security. The debt instruments mature on January 1, 2023, and pay interest semi-annually on January 1 and July 1. On December 31, 2020, the fair market value of the instruments is 98%. On March 2, 2021, GAL Co. sold the trading security for P1,980,000. How much will be recognized as income on the 2020 income statement? Selected data for ABC Co. for 2020 are as follows: Decrease in merchandise inventory: P20,000 increase in accounts payable: P50,000 Disbursements for purchases of merchandise: P580,000. How…