In 2020, Port Company sold the entire working interest to Frank Company for:$100,000. In 2019, Port Company recognized impairment of $20,000 on this lease.In 2018, Port Company purchased the working interest of an unproved lease for16.a. $70,000b. $110,000Assume instead that the property was assessed on a group basis and sold forc. $70,000d. $110,000REQUIRED: Give the entry to record the sale in each of the above situationsassuming that Port Company is a successful efforts company.

The journal entry is very important for the accounting process because the business transaction is…

16. In 2018, Port Company purchased the working interest of an unproved lease for $100,000. In 2019, Port Company recognized impairment of $20,000 on this lease. In 2020, Port Company sold the entire working interest to Frank Company for: a. $70,000 b. $110,000 Assume instead that the property was assessed on a group basis and sold for: c. $70,000 d. $110,000 REQUIRED: Give the entry to record the sale in each of the above situations, assuming that Port Company is a successful efforts company.

16. In 2018, Port Company purchased the working interest of an unproved lease for $100,000. In 2019, Port Company recognized impairment of $20,000 on this lease. In 2020, Port Company sold the entire working interest to Frank Company for: a. $70,000 b. $110,000 Assume instead that the property was assessed on a group basis and sold for: c. $70,000 d. $110,000 REQUIRED: Give the entry to record the sale in each of the above situations, assuming that Port Company is a successful efforts company.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Baillie Power leased high-tech electronic equipment from Courtney Leasing on January 1, 2024. Courtney purchased the equipment from Doane Machines at a cost of $253,000, its fair value. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Related Information: Lease term2years (8 quarterly periods)Quarterly lease payments$18,000on January 1, 2024, and on March 31, June 30, September 30, and December 31 thereafterEconomic life of asset5yearsInterest rate charged by the lessor8% Required: Prepare a lease amortization schedule and appropriate entries for Baillie Power from the beginning of the lease through December 31, 2024. December 31 is the fiscal year end for each company. Appropriate adjusting entries are recorded at the end of each quarter.
Baillie Power leased high-tech electronic equipment from Courtney Leasing on January 1, 2021. Courtney purchased the equipment from Doane Machines at a cost of $258,000, its fair value. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Related Information: Lease term 2 years (8 quarterly periods) Quarterly lease payments $23,000 at Jan. 1, 2021, and at Mar. 31, June 30, Sept. 30, and Dec. 31 thereafter Economic life of asset 5 years Interest rate charged by the lessor 8% Required:Prepare a lease amortization schedule and appropriate entries for Baillie Power from the beginning of the lease through December 31, 2021. December 31 is the fiscal year end for each company. Appropriate adjusting entries are recorded at the end of each quarter.
Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2021. Edison purchased the equipment from International Machines at a cost of $114,321. (FV of $1, PV of $1, FVA of $1, PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Related Information: Lease term Quarterly rental payments. Economic life of asset Fair value of asset Implicit interest rate (Also lessee's incremental borrowing rate) Required: Prepare a lease amortization schedule and appropriate entries for Edison Leasing from the beginning of the lease through January 1, 2022. Edison's fiscal year ends December 31. Complete this question by entering your answers in the tabs below. Amort Schedule Payment Date 01/01/2021 01/01/2021 04/01/2021 07/01/2021 10/01/2021 01/01/2022 04/01/2022 07/01/2022 10/01/2022 General Journal Prepare a lease amortization schedule for Edison Leasing from the beginning of the lease through January 1, 2022. Edison's fiscal…
Ef 433.
unc.1
please dont provide answer in image format thank you
218. Subject : - Accounting
Assume that on December 31, 2024, Kimberly-Clark Corp. signs a 10-year, non-cancelable lease agreement to lease a storage building from Cullumber Storage Company. The following information pertains to this lease agreement. 1. 2. 3. 4. 5. The agreement requires equal rental payments of $67,399 beginning on December 31, 2024. The fair value of the building on December 31, 2024, is $492,833. The building has an estimated economic life of 12 years, a guaranteed residual value of $9,500, and an expected residual value of $6,200. Kimberly-Clark depreciates similar buildings on the straight-line method. The lease is nonrenewable. At the termination of the lease, the building reverts to the lessor. 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.)
Subject: acounting
s
Lahiri Leasing purchased a single-engine plane for $580,000 and leased it to Red Baron Flying Club for its fair value of $685,464 on January 1, 2024. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Terms of the lease agreement and related facts were a. Eight annual payments of $120,000 beginning January 1, 2024, the beginning of the lease, and on each December 31 through 2030. Red Baron knows that Lahiri Leasing's implicit interest rate was 11%. The estimated useful life of the plane is eight years. Payments were calculated as follows: Amount to be recovered (fair value) Lease payments at the beginning of each of the next eight years: ($685,464 + 5.7122*) *Present value of an annuity due of $1: n=8, /= 11% b. Red Baron's incremental borrowing rate is 12%. $ 685,464 $ 120,000 c. Incremental costs of consummating the completed lease transaction incurred by Lahiri Leasing were $18,746. Required: 1. How should this…
P21-15 (Please use the latest IFRS accounting standards to answer the question, and take note that lessee do recognise depreciation) Cleveland Group leased a new crane to Abriendo Construction under a 5-year, non-cancelable contract starting January 1, 2022. Terms of the lease require payments of R$48,555 each January 1, starting January 1, 2022. The crane has an estimated life of 7 years, a fair value of R$240,000, and a cost to Cleveland of R$240,000. The estimated fair value of the crane is expected to be R$45,000 (unguaranteed) at the end of the lease term. No bargain purchase or renewal options are included in the contract, and the crane is not a specialized asset. Both Cleveland and Abriendo adjust and close books annually at December 31. Collectibility of the lease payments is probable. Abriendo's incremental borrowing rate is 8%, and Cleveland's implicit interest rate of 8% is known to Abriendo. Instructions a. Identify the type of lease involved and give reasons for your…