!Required information[The following information applies to the questions displayed below.]Thrillville has $39.3 million in bonds payable. One of the contractual agreements in the bond is that the debt to equity ratiocannot exceed 2.0. Thrillville's total assets are $79.3 million, and its liabilities other than the bonds payable are $9.3million. The company is considering some additional financing through leasing.3. The company enters a lease agreement requiring lease payments with a present value of $14.3 million. Record the lease. (If noentry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answerin millions (i.e., $5,500,000 should be entered as 5.5) rounded to 1 decimal place.)

Introduction: - Journal entry is the first stage of accounting process. Journal entry used to record…

3. The company enters a lease agreement requiring lease payments with a present value of $14.3 million. Record the lease. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your ans in millions (ie. $5.500 000 should be entered as 5.5) rounded to 1 decimal place)

3. The company enters a lease agreement requiring lease payments with a present value of $14.3 million. Record the lease. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your ans in millions (ie. $5.500 000 should be entered as 5.5) rounded to 1 decimal place)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Help with parts 4 and 5. 4. Prepare journal entries for Sax for the years 2016 and 2017. 5. Next Level If the lease term is 3 years and the annual payment is $110,000, how would Sax classify the lease under (a) U.S. GAAP and (b) IFRS?
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On January 1, 2025, a machine was purchased for $980,000 by Shamrock Co. The machine is expected to have an 8-year life with no salvage value. It is to be depreciated on a straight-line basis. The machine was leased to Pharoah Inc. for 3 years on January 1, 2025, with annual rent payments of $260,000 due at the beginning of each year, starting January 1, 2025. The machine is expected to have a residual value at the end of the lease term of $562,500, though this amount is unguaranteed. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) How much should Shamrock report as income before income tax on this lease for 2025? Income before income tax $
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