5609955 The Financial Accounting Standards Board (FASB) and Accounting Standards

Applying New Lease Accounting Standards for Operating Leases On January 1 of the current year, CCH Corporation entered into the following lease contract. Based on the facts, CCH Corporation classifies the lease as an operating lease. Details of lease contract     Leased asset Office space   Lease term 5 years Annual lease payment $115,487   Upfront fees $10,000   Cost of debt capital 5%   a. Determine the amount of the lease liability that CCH will add to its balance sheet at the inception of the lease.   Amount of lease liability     b.  What amount will be added to the balance sheet as an asset?   Amount added as an asset     The rest of the questions are given in pictures below. please answer all parts correctly. i will upvote. thank you!!

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For attached data table: Request: Make initial entry, from the point of view of the borrower (who receives a loan), separating short- and long-term portion of the loan. Make appropriate entries to be made on 31 August 2023, not forgetting reclassification from long term to short term.

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entity a issued a 12%, 200,000, one-year, note payable on april 1, 20x1. Entity A uses a calendar year period. The principal and interest on the note are due on April 1, 20x2. What is the adjusting entry on December 31, 20x1?

6 Streamlined installment agreement terms include: Must be paid within 36 months or by CSED (earliest date). Financial disclosure required. Maximum balance of $50,000 (assessed). Monthly disposable income statemen

A debtor firm’s 12/31/21 statement of financial position is to be issued of 4/15/22. A long-term obligation contracted in 2019 for settlement on 1/15/22 was extinguished through cash payment on its due date. On 1/20/22, a 5-year note was issued to replace the cash used up for the payment made on 1/15/22. Which of the following statements is correct? Group of answer choices The original obligation should be reported in the 2021 statement of financial position as a current liability because the entity does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting period. The new obligation entered into on 1/20/22 should be reported in the 2022 statement of financial position as a non-current liability because it is due to be settled beyond twelve months after the reporting period. The original obligation should be reported in the 2022 statement of financial position as a non-current liability because the entity does have an…

More info - X December 1 Ritchie sold 14 go-karts on account. The selling price of each go-kart was $1,900; the cost of goods sold for each was $400. December 5 Ritchie received notice of a class-action lawsuit being filed against it. The lawsuit claims that Ritchie's go-karts have engine defects that appear after the warranty period expires. The plaintiffs,want Ritchie to replace the defective engines and pay damages for the owners' losé of use. The cost of replacing the engines would be approximately $380,000 (not including any damages). Ritchie's attorney believes that it is reasonably possible that Ritchie will lose the case, but the attorney cannot provide a dollar estimate of the potential loss amount. December 20 Ritchie performed repairs due to product warranty complaints for two go-karts sold earlier in the year. Ritchie's cost of the repairs, paid in cash, was $850. December 22 An individual claims that he suffered emotional distress from a high-speed ride on a Ritchie…

The following amortization schedule indicates the interest and principal that Chip's Cookie Corporation (CCC) must repay on an installment note established January 1, 2021. CCC has a December 31 year-end and makes the required annual payments on December 31. Use the amortization schedule to prepare CCC's required journal entries on (a) January 1, 2021; (b) December 31, 2021; (c) December 31, 2022; (d) December 31, 2023; and (e) December 31, 2024. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) Year 1 2 3 4 Total Beginning Note Payable 17,000 13,114 8,995 4,629 View transaction list

Assume that Company X loaned $12,000 to an employee on October 1, 2018, by creating a note the employee pay the principal and 8% interest on September 30, 2019. Assume the company makes adjusting entries only at year-end on December 31. a. Record the establishment of the note b. Record any necessary end-of-period adjusting entry to be made at the end of 2018 c. Record the receipt of interest and principal on September 30,2019

Analyzing and Interpreting Lease Footnote Disclosures The GAP Inc. discloses the following schedule to its fiscal 2018 (ended February 2, 2019) 10-K/report relating to its leasing to its leasing activities. The aggregate minimum noncancelable annual lease payments under leases in effect on February 2, 2019, are as follows: Fiscal Year ($ millions) 2019 2020 2021 2022 2023 $1,156 1.098 892 730 539 Thereafter 1,520 Total minimum lease commitments $5,935 Compute the present value of GAP's operating leases using a 6% discount rate and round the remaining lease term to the nearest whole year. Round each answer to the nearest whole number. S million Present Value $ Year 1 Year 2 Year 3 Year 4 Year 5 After 5 Check $ 1,091 977 ✔ 749 578 ✔ 403 ✓ 1.136 x 4,934 x You have correctly selected 5.

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ASU 2016-02 changed how leases are to be presented on corporate balance sheets. What new categories are now represented on balance sheets? Operating lease right-of-use assets, current operating lease liabilities, and long-term operating lease liabilities. Long-term operating lease liabilities, other long-term liabilities, and operating lease right-to-use assets. Operating lease right-of-use assets, current operating lease liabilities, and deferred revenue. Current operating lease liabilities, long-term operating lease liabilities, and current assets.

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Exercise 21-04 (Part Level Submission) Assume that on December 31, 2019, Kimberly-Clark Corp. signs a 10-year, non-cancelable lease agreement to lease a storage building from Sheffield Storage Company. The following information pertains to this lease agreement. 1. The agreement requires equal rental payments of $71,830 beginning on December 31, 2019. 2. The fair value of the building on December 31, 2019 is $525,176. 3. The building has an estimated economic life of 12 years, a guaranteed residual value of $10,000, and an expected residual value of $7,000. Kimberly-Clark depreciates similar buildings on the straight-line method. 4. The lease is nonrenewable. At the termination of the lease, the building reverts to the lessor. 5. Kimberly-Clark's incremental borrowing rate is 8% per year. The lessor's implicit rate is not known by Kimberly-Clark. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) v (a) Prepare…

Plummer Leasing Company signs a lease agreement on January 1, 2020, to lease warehouse equipment to AmZon Company. The term of the non-cancelable lease is 2 years, and payments are required at the end of each year. The following information relates to this agreement: 1. 2. 3. 4. AmZon has the option to purchase the equipment for $20,000 upon termination of the lease. It is not reasonably certain that AmZon will exercise this option. The equipment has a cost of $165,000 and fair value of $190,000 to Plummer Leasing. The useful economic life is 2 years, with a residual value of $20,000. Plummer Leasing desires to earn a return of 6% on its investment. Collectibility of the payments by Plummer Leasing is probable.

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The GAP Inc. discloses the following schedule to its fiscal 2018 (ended February 2, 2019) 10-K report relating to its leasing to its leasing activities. Note: Complete the entire question in Excel and format each answer to two decimal places. Then enter the answers into the provided spaces below with two decimal places. The aggregate minimum noncancelable annual lease payments under leases in effect on February 2, 2019, are as follows: Fiscal Year ($ millions) 2019 $1,098 2020 1,043 2021 847 2022 694 2023 512 Thereafter Total minimum lease commitments $5,638 1,444 Compute the present value of GAP's operating leases using the following assumptions Assmption Discount rate Round remaining lease term to the nearest whole year Year Present Value 1 $ 0 2 0 3 0 4 0 5 0 >5 0 $ 0 6%

Question 1 (theory) What was the major change in accounting for leases introduced by new accounting standard AASB16/IFRS16? Why was such a change launched by the professional standard setting bodies to abandon AASB117/IAS17?   Question 2 On 1 July 2020, Sherlock Ltd leased a processing plant to Holmes Ltd. The plant was purchased by Sherlock Ltd on 1 July 2020 for its fair value of $467 112. The lease agreement contained the following provisions: Lease term 3 years Economic terms of the plant 5 years Annual rental payments, in arrears (commencing 30?6/2021) $150,000 Residual value at the end of lease term $90,000 Residual guaranteed by lessee $60,000 Interest rate implicit in lease 7% The lease is cancellable only with the permission of the lessor   Holmes Ltd intends to return the processing plant to Sherlock Ltd at the end of the lease term. The lease has been classified as a finance lease by Sherlock Ltd. Required: Prepare: (a) the…

Verizon Communications Inc. provides the following footnote relating to adoption of the new lease accounting standards (Topic 842) in its 10-Q report for the quarter ended March 31, 2019.The cumulative after-tax effect of the changes made to our condensed consolidated balance sheet for the adoption of Topic 842 were as follows:     Adjustments   ($ millions) At Dec. 31, 2018 due to Topic 842 At Jan. 1, 2019 Prepaid expenses and other $7,089 $(428) $6,661 Operating lease right-of-use assets - 30,213 30,213 Other assets 15,232 (2,662) 12,570 Accounts payable and accrued liabilities 22,501 (3) 22,498 Other current liabilities 8,239 (2) 8,237 Current operating lease liabilities - 3,810 3,810 Deferred income taxes 33,795 139 33,934 Noncurrent operating lease liabilities - 24,964 24,964 Other liabilities 13,922 (1,815) 12,107 Retained earnings 56,605 533 57,138 Noncontrolling interests 2,035 1 2,036 Rent expense for operating leases is recognized on a…

i know it’s a long one but i appreciate the help

Required Information [The following information applies to the questions displayed below.] Agrico Incorporated accepted a 10-month, 11% (annual rate), $5,650 note from one of its customers on July 15, 2022; Interest is payable with the principal at maturity. b-2. Prepare the journal entry to record collection of the note and Interest at maturity. Note: If no entry is required for a transaction/event, select "No Journal entry required" in the first account fleld. Do not round your Intermediate calculation. Round your answers to 2 decimal places. View transaction list View journal entry worksheet No A Event 1 Cash Interest payable Interest revenue Note receivable General Journal Debit Credit Ⓒ