Gen Combo Ll Financial Accounting: Information For Decisions; Connect Ac
9th Edition
ISBN: 9781260260779
Author: Wild
Publisher: MCG
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On January 1, Harbor (lessee) signs a five-year lease for equipment that is accounted for as a finance lease. The lease requires five $10,000 lease payments (the first at the beginning of the lease and the remaining four at December 31 of years 1, 2, 3, and 4), and the present value of the five annual lease payments is $41,000, based on an 11% interest rate. 1. Prepare the January 1 journal entry Harbor records at inception of the lease for any asset or liability. 2. Prepare the January 1 entry Harbor records for the first $10,000 cash lease payment. 3. If the leased asset has a five-year useful life with no salvage value, prepare the December 31 journal entry Harbor records each year for amortization of the leased asset.
On January 1, Rogers (lessee) signs a three-year lease for machinery that is accounted for as a operating lease. The lease requires
three $18,000 lease payments (the first at the beginning of the lease and the remaining two at December 31 of Year 1 and Year 2) The
present value of the three annual lease payments is $51,000, using a 6.003% interest rate. The lease payment schedule follows.
Date
January 1, Year 1
December 31, Year 1
December 31, Year 2
Required 1
No
1
(A) Beginning (B) Debit
Balance of
2
Lease
Liability
$ 51,000
33,000
16,981
Required 2
3
Interest on
Lease Liability
6.003% X (A)
Complete this question by entering your answers in the tabs below.
Required:
1. Prepare the January 1 journal entry at the start of the lease to record any asset or liability.
2. Prepare the January 1 journal entry to record the first $18,000 cash lease payment.
3. Prepare the December 31 journal entry to record amortization at the end of (a) Year 1, (b) Year 2, and (c) Year 3.
4. Prepare the…
On January 1, Rogers (lessee) signs a three-year lease for machinery that is accounted for as a finance lease. The lease
requires three $18,000 lease payments (the first at the beginning of the lease and the remaining two at December 31 of
Year 1 and Year 2). The present value of the three annual lease payments is $51,000, using a 6.003% interest rate. The
lease payment schedule follows.
Date
January 1, Year 1
December 31, Year 1
December 31, Year 2
View transaction list
1
Journal entry worksheet
2
(A) Beginning
Balance of
Lease
Liability
3
$ 51,000
33,000
16,981
Note: Enter debits before credits.
Date
Year 1
December 31
(B) Debit
Interest on
Lease Liability
6.003% X (A)
3. Prepare the December 31 journal entry to record straight-line amortization with zero salvage value at the end of (a) Year 1, (b) Year 2,
and (c) Year 3.
1,981
1,019
$ 3,000
+
General Journal
(C) Debit
Lease
Liability (D)
(B)
$ 18,000
16,019
16,981
$ 51,000
Record amortization of right-of use asset at December 31 of…
Chapter 10 Solutions
Gen Combo Ll Financial Accounting: Information For Decisions; Connect Ac
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. 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 - Prob. 12QSCh. 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. 21QSCh. 10 - Prob. 1ECh. 10 - Prob. 2ECh. 10 - Bringham Company issues bonds with a par value...Ch. 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 - Heineken N.V. reports the following information...Ch. 10 - Prob. 21ECh. 10 - Prob. 2PSACh. 10 - Refer to the bond details in Problem 10-2A,...Ch. 10 - Prob. 7PSACh. 10 - Prob. 8PSACh. 10 - Prob. 9PSACh. 10 - Prob. 10PSACh. 10 - Prob. 11PSACh. 10 - Prob. 12PSACh. 10 - Prob. 2PSBCh. 10 - Prob. 3PSBCh. 10 - Prob. 6PSBCh. 10 - Prob. 7PSBCh. 10 - Prob. 8PSBCh. 10 - Prob. 9PSBCh. 10 - Prob. 10PSBCh. 10 - Prob. 11PSBCh. 10 - Refer to the lease details in Problem 10-11B....Ch. 10 - Prob. 10SPCh. 10 - Prob. 1FSACh. 10 - Prob. 2FSACh. 10 - FSA 10-3 Selected results from Samsung, Apple, and...Ch. 10 - Prob. 1BTNCh. 10 - Prob. 2BTNCh. 10 - Prob. 5BTN
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