FINANCIAL & MANAGERIAL ACCOUNTING
9th Edition
ISBN: 9781266265549
Author: Wild
Publisher: MCG
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Question
Chapter 10, Problem 13PSB
a
To determine
Concept Introduction:
Operating lease: Operating lease is a contract in which the owner retains the risk and rewards of ownership, a lessee under an operating lease only reports lease payments as an expense and does not report leased asset or lease liability in the
The
b
To determine
Concept Introduction:
Operating lease: Operating lease is a contract in which the owner retains the risk and rewards of ownership, a lessee under an operating lease only reports lease payments as an expense and does not report leased asset or lease liability in the balance sheet whereas financial leases in which lessor transfers all risk and reward of ownership to the lessee.
The journal entry for the first-year lease payment.
c
To determine
Concept Introduction:
Operating lease: Operating lease is a contract in which the owner retains the risk and rewards of ownership, a lessee under an operating lease only reports lease payments as an expense and does not report leased asset or lease liability in the balance sheet whereas financial leases in which lessor transfers all risk and reward of ownership to the lessee.
The journal entry to record straight-line amortization for three years.
d
To determine
Concept Introduction:
Operating lease: Operating lease is a contract in which the owner retains the risk and rewards of ownership, a lessee under an operating lease only reports lease payments as an expense and does not report leased asset or lease liability in the balance sheet whereas financial leases in which lessor transfers all risk and reward of ownership to the lessee.
The journal entry for lease payments at the end of years 1 and 2
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Students have asked these similar questions
On January 1, 2021, Robertson Construction leased several items of equipment under a two-year operating lease agreement from
Jamison Leasing, which routinely finances equipment for other firms at an annual interest rate of 4%. The contract calls for four rent
payments of $47,000 each, payable semiannually on June 30 and December 31 each year. The equipment was acquired by Jamison.
Leasing at a cost of $367,000 and was expected to have a useful life of five years with no residual value. Both firms record.
amortization and depreciation semi-annually.
Required:
Prepare the appropriate journal entries for the lessor (Jamison Leasing) from the beginning of the lease through the end of 2021. (If no
entry is required for a transaction/event, select "No journal entry required" in the first account field.)
a) Determine the rate of interest implicit in the lease and calculate the present value ofthe lease payments.
b) Prepare the journal entries in the books of Tea TreeLtd for the years ending 30 June2021 and 30 June 2022.
c) Prepare the portion of the statement of financial position for the year ending 30 June2022 relating to the lease asset and lease liability.
Recording Operating Lease Journal Entries-Lessee
Lessor Co. enters into an operating lease of property with Lessee Co. on January 1 for a five-year
term at an annual fixed lease payment of $10,000 (with beginning of year payments). Prepare the
journal entries for the lessee assuming that the lessee is aware of the rate implicit in the lease of
5%.
a. January 1-Record the right-of-use asset.
b. January 1-Record the first lease payment.
c. December 31-Record the year-end adjusting entry.
• Note: Round your answers to the nearest whole dollar.
Date
a) Jan. 1
b) Jan. 1
c) Dec. 31
Check
Account Name
Right-of-Use Asset
To record the right-of-use asset
To record the first lease payment
To record the year-end adjusting entry.
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Chapter 10 Solutions
FINANCIAL & MANAGERIAL ACCOUNTING
Ch. 10 - Prob. 1QSCh. 10 - Prob. 2QSCh. 10 - Prob. 3QSCh. 10 - Prob. 4QSCh. 10 - Prob. 5QSCh. 10 - Prob. 6QSCh. 10 - Prob. 7QSCh. 10 - Prob. 8QSCh. 10 - Prob. 9QSCh. 10 - Prob. 10QS
Ch. 10 - Prob. 11QSCh. 10 - Prob. 12QSCh. 10 - Prob. 13QSCh. 10 - Prob. 14QSCh. 10 - Prob. 15QSCh. 10 - Prob. 16QSCh. 10 - Prob. 17QSCh. 10 - Prob. 18QSCh. 10 - Prob. 19QSCh. 10 - Prob. 20QSCh. 10 - Prob. 21QSCh. 10 - Prob. 22QSCh. 10 - Prob. 23QSCh. 10 - Prob. 24QSCh. 10 - Prob. 1ECh. 10 - Prob. 2ECh. 10 - Prob. 3ECh. 10 - Prob. 4ECh. 10 - Prob. 5ECh. 10 - Prob. 6ECh. 10 - Prob. 7ECh. 10 - Prob. 8ECh. 10 - Prob. 9ECh. 10 - Prob. 10ECh. 10 - Prob. 11ECh. 10 - Prob. 12ECh. 10 - Prob. 13ECh. 10 - Prob. 15ECh. 10 - Prob. 16ECh. 10 - Prob. 17ECh. 10 - Prob. 18ECh. 10 - Prob. 19ECh. 10 - Prob. 20ECh. 10 - Prob. 21ECh. 10 - Prob. 22ECh. 10 - Prob. 23ECh. 10 - Prob. 1PSACh. 10 - Prob. 2PSACh. 10 - Prob. 3PSACh. 10 - Prob. 4PSACh. 10 - Prob. 5PSACh. 10 - Prob. 6PSACh. 10 - Prob. 7PSACh. 10 - Prob. 8PSACh. 10 - Prob. 9PSACh. 10 - Prob. 10PSACh. 10 - Prob. 11PSACh. 10 - Prob. 12PSACh. 10 - Prob. 13PSACh. 10 - Prob. 1PSBCh. 10 - Prob. 2PSBCh. 10 - Prob. 3PSBCh. 10 - Prob. 4PSBCh. 10 - Prob. 5PSBCh. 10 - Prob. 6PSBCh. 10 - Prob. 7PSBCh. 10 - Prob. 8PSBCh. 10 - Prob. 9PSBCh. 10 - Prob. 10PSBCh. 10 - Problem 10-10BB Effective Interest: Amortization...Ch. 10 - Prob. 12PSBCh. 10 - Prob. 13PSBCh. 10 - Prob. 10SPCh. 10 - Prob. 1.1AACh. 10 - Prob. 1.2AACh. 10 - Prob. 1.3AACh. 10 - Prob. 2.1AACh. 10 - Prob. 2.2AACh. 10 - Prob. 2.3AACh. 10 - Prob. 3.1AACh. 10 - Prob. 3.2AACh. 10 - Prob. 3.3AACh. 10 - Prob. 1DQCh. 10 - Prob. 2DQCh. 10 - Prob. 3DQCh. 10 - Prob. 4DQCh. 10 - Prob. 5DQCh. 10 - Prob. 6DQCh. 10 - Prob. 7DQCh. 10 - Prob. 8DQCh. 10 - Prob. 9DQCh. 10 - What is the issue price of a $2,000 bond sold at...Ch. 10 - Prob. 11DQCh. 10 - Prob. 12DQCh. 10 - Prob. 13DQCh. 10 - Prob. 14DQCh. 10 - Prob. 15DQCh. 10 - Prob. 1BTNCh. 10 - Prob. 2BTNCh. 10 - Prob. 3BTNCh. 10 - Prob. 4BTN
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