The following facts pertain to a non-cancelable lease agreement between Splish Brothers Leaslessee.Commencement dateMay 1, 2025Annual lease payment due at the beginning ofeach year, beginning with May 1, 2025$20,456.70Bargain purchase option price at end of lease term$4,000Lease term5 yearsEconomic life of leased equipmentLessor's cost10 years$65,000Fair value of asset at May 1, 2025$98,000.20Lessor's implicit rate4 %Lessee's incremental borrowing rate4 %The collectibility of the lease payments by Splish Brothers is probable. 5/1/25Lease Receivable5/1/2512/31/25Cost of Goods SoldSales RevenueInventory(To record the lease)CashLease Receivable(To record lease payment)Lease ReceivableInterest Revenue5/1/26CashLease ReceivableInterest Revenue12/31/26Lease ReceivableInterest Revenue98000.206500020456.7020456.7098

Step 1: Record the Lease (May 1, 2025)Lease Receivable: $98,000.20 (Fair value of the asset)Cost of…

Answered: The following facts pertain to a…

Business/Professional Ethics Directors/Executives/Acct

8th Edition

ISBN:9781337485913

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Chapter8: Subprime Lending Fiasco-ethics Issues

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Problem 3.7EC

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Oriole Company specializes in leasing large storage units to other businesses. Oriole entered a contract to lease a storage unit to Ivanhoe, Inc. for 4 years when that particular storage unit had a remaining useful life of 5 years. The fair value of the unit was $15,000 at the commencement of the lease on January 1, 2025. The present value of the five equal rental payments of $3,808 at the start of each year, plus the present value of a guaranteed residual value of $1,000, equals the fair value of $15,000, Oriole's implicit rate of return on the lease of 5%. The following is a correct, complete amortization schedule created by Oriole. Date 1/1/25 1/1/25 1/1/26 1/1/27 1/1/28 12/31/28 Lease Payment $3,808 3,808 3,808 3,808 1,000 $16,232 Interest (5%) on Outstanding Lease Receivable $560 397 227 48 $1,232 Reduction of Lease Receivable $3,808 3,248 3,411 3,581 952 $15,000 Balance of Lease Receivable $15,000 11.192 7,944 4,533 952 0 Given the above schedule, make the appropriate entries at…
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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 $66,299 beginning on December 31, 2019. 2. The fair value of the building on December 31, 2019 is $486,019. The building has an estimated economic life of 12 years, a guaranteed residual value of $12,000, and an expected residual value of $9,800. Kimberly-Clark depreciates similar buildings on the straight-line method. 3. 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.)
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Part 1: New Lease Accounting – IFRS 16 Leases Effect Analysis. Q: Discuss the effects of the new accounting on the following items and ratios of lessees. Provide reason(s) behind all effects, in the following: 1. EBITDA, operating profit, and profit before tax 2. Operating cash flow, financing cash flow, and total cash flow 3. Debt to equity, current ratio, and return on total assets
docs.google.com Done the sale. 2. Which of the following best 1 point describes the accounting for assurance-type warranty costs? O a. Expensed when paid. b. Expensed when warranty claims are certain. c. Expensed based on estimate in year of sale. d. Expensed when incurred.
Sh5 Please help me. Solution Thankyou.
When a lessor receives cash on an operating lease, which of the following accounts is increased? A. Lease Payable B. Interest Revenue: Leases C. Lease Receivable D. Rent Revenue
LeBron James (LBJ) Corporation agrees on January 1, 2025, to lease equipment from Blossom, Inc. for 3 years. The lease calls for annual lease payments of $22,000 at the beginning of each year. The lease does not transfer ownership, nor does it contain a bargain purchase option, and is not a specialized asset. In addition, the useful life of the equipment is 10 years, and the present value of the lease payments is less than 90% of the fair value of the equipment. Prepare LBJ's journal entries on January 1, 2025 (commencement of the operating lease), and on December 31, 2025. Assume the implicit rate used by the lessor is unknown, and LEY's incremental borrowing rate is 6%. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. For calculation purposes, use 5 decimal places as displayed in the factor…
Sh12
Question 6 (22 pts): Margin Account Assume you buy one July '23 KC HRW contract today at $5.2875; its initial is $2,310 with a maintenance of $2,100. o Today - July KC HRW settles at 528'6. What do you deposit in the margin account? o Session 2-July KC HRW settles at 520'2 What is the gain or loss from session 2? What is the balance? Is there a margin call? If so, what is it? o Session 3-July KC HRW settles at 526'6 What is the gain or loss from session 3? What is the balance? Is there a margin call? If so, what is it? o Session 4 - Offset July KC HRW at 536'4 What is the gain or loss from session 4? What is the balance? Is there a margin call? If so, what is it? o Session 5 - Offset July KC HRW at 530'0 Calculate the profit or loss on the trade.

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