Connect Access Card for Financial Accounting: Information and Decisions
8th Edition
ISBN: 9781259662966
Author: John J Wild
Publisher: McGraw-Hill Education
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Chapter 10, Problem 18E
1.
Summary Introduction
Introduction: Bond issuance refers to the process of raising ,money from investors by issuing them bonds. Bonds are assumed debt on the company as they raise the liability of the company.
To determine:
2.
Summary Introduction
Introduction: Bond issuance refers to the process of raising ,money from investors by issuing them bonds. Bonds are assumed debt on the company as they raise the liability of the company.
To determine:
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Core Co. leased a piece of manufacturing equipment from E-So Co. with the following terms:
Annual lease payment: $990,000
Term of lease: 5 years
Interest rate: 4%
Lease commences on January 1, 2023
Payments are made on December 31 of each year in the lease term
For parts a and b:
a. Prepare journal entries to show the effects for Core Co. for January 1, 2023-December 31, 2024, if the lease is classified as a finance lease.
b. Prepare journal entries to show the effects for Core Co. for January 1, 2023-December 31, 2024, if the lease is classified as an operating lease.
Operating Lease
Finance Lease
a. Finance lease:
Date
Jan. 1, 2023
Account
To record the start of the finance lease.
Dec. 31, 2023
To record the amortization of leased asset.
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2024
To record the lease payment.
To record the amortization of leased asset.
To record the lease payment.
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Debit
Credit
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Recording Operating Lease-Lessor
Gomez Inc. leases a vehicle from CareMax Inc. on January 1 for a three-year period. Gomez agrees to make $9,600 annual payments beginning on January 1. Prepare the journal entries during the year for
CareMax Inc. assuming that the fair value of the vehicle is $44,800 and it has a useful life of 6 years with no salvage value (depreciated using the straight-line method). CarMax Inc. appropriately classifies the lease
as an operating lease.
Note: Round your answers to the nearest whole dollar.
Account Name
Date
Jan, 1
Dec. 31
Dec. 31
Check
To record receipt of lease payment
To record lease revenue
+
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To record depreciation
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Dr.
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After the fourth year, the residual value was estimated at
The lease provided for a transfer of title to the lessee at the
and four year-end rental payments. The lease qualified as a
Module4_Lease.pdf x
of the asset was P7,994,000. Terms of the lease specify
four-year life for the lease, an annual interest rate of 15%
Ericson Company leased an asset to another entity. The coet
12 / 19
100%
Problem 13-13 (IAA)
direct financing lease..
The lease provided for a transfer of title to the lessee
After the fourth year, the residual value was estimated
P1,000,000.
The PV of 1 at 15% for 4 periods is .572, and the PV of a
ordinary annuity of 1 at 15% for 4 periods is 2.855.
What is the annual rental payment?
a. 2,000,000
b. 3,000,350
c. 2,800,000
d. 2,599,650
Chapter 10 Solutions
Connect Access Card for Financial Accounting: Information and Decisions
Ch. 10 - What is the main difference between notes payable...Ch. 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 - Prob. 10DQ
Ch. 10 - Prob. 11DQCh. 10 - Prob. 12DQCh. 10 - Prob. 13DQCh. 10 - Prob. 14DQCh. 10 - Prob. 15DQCh. 10 - Prob. 16DQCh. 10 - Prob. 17DQCh. 10 - Prob. 18DQCh. 10 - Prob. 19DQCh. 10 - Prob. 20DQCh. 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. 10QSCh. 10 - Prob. 11QSCh. 10 - Bond features and terminology A2 Enter the letter...Ch. 10 - Prob. 13QSCh. 10 - Prob. 14QSCh. 10 - Prob. 15QSCh. 10 - Prob. 16QSCh. 10 - Jin Li, an employee of ETrain.com, leases a car at...Ch. 10 - Prob. 18QSCh. 10 - Prob. 19QSCh. 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. 14ECh. 10 - Prob. 15ECh. 10 - Prob. 16ECh. 10 - Prob. 17ECh. 10 - Prob. 18ECh. 10 - Prob. 19ECh. 10 - Prob. 20ECh. 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 - Straight-Line: Amortization of bond discount Pi P2...Ch. 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 - Prob. 11PSBCh. 10 - Prob. 10SPCh. 10 - Prob. 1BTNCh. 10 - Prob. 2BTNCh. 10 - Prob. 3BTNCh. 10 - Prob. 4BTNCh. 10 - Access the March 26, 2015, filing of the 10-K...Ch. 10 - Prob. 6BTNCh. 10 - Prob. 7BTNCh. 10 - Samsung(Samsung.com), Apple, and Google are...
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