Karla Salons leased equipment from Smith Company on July 1, 2024, in a finance lease. The present value of the lease payments discounted at 12% was$60,100. Ten annual lease payments of $9,500 are due each year beginning July 1, 2024. Smith Company had constructed the equipment recently for$51,500, and its retail fair value was $60,100.What amount did Smith Company record in its income statement for the reporting year ending December 31, 2024, in connection with the lease? (ignoretaxes)Multiple Choice$8,600$3,036$11,636$14,672

In financial lease, the ownership is notionally passed to the lesse.This is beacause the risk and…

Answered: 960'ES C $8,600

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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Round to nearest cent: Principal Interest Rate Time Simple Interest Total Amount Owned $18,000 9% 4 mos
Multiple Choice $83,000. $52,500. $90,040. $113,500.
Ef 253.
Landon Wallin is an auto mechanic who wishes to start his own business. He will need $4900 to purchase tools and equipment. Landon decides to finance the purchase with a 36-month fixed installment loan with an APR of 5%. a) Determine Landon's finance charge. b) Determine Landon's monthly payment. Click the icon to view the partial APR table. a) Landon's finance charge is $ (Round to the nearest cent as needed.) b) Landon's monthly payment is S (Round to the nearest cent as needed.) ...
RelyaTech Corporation makes an extra large part to use in one its fabulous products. A total of 19,000 units of this extra large part are produced and used every year. The company's costs of producing the extra large part at this level of activity are below. Direct materials Direct labor Variable manufacturing overhead Supervisor's salary Depreciation of special equipment Allocated general overhead Per Unit $4.10 $8.70 $9.20 $4.60 $3.00 $8.20 (ID#32835) An outside supplier has offered to make the extra large part and sell it to RelyaTech for $29.50 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including the direct labor, can be avoided. The special equipment used to make the extra large part has no salvage value or other use. The allocated general overhead represents fixed costs of the entire RelyaTech company, none of which would be avoided if the part were purchased instead of produced internally. In addition, the space used to make the extra…
On November 1, Jasper Company loaned another company $230,000 at a 12.0% interest rate. The note receivable plus interest will not be collected until March 1 of the following year. The company's annual accounting period ends on December 31. The amount of interest revenue that should be reported in the first year is: Multiple Choice $4,600. $6,675. $0. here to search 8:01 PM 100% 2/21/2022
Given Principal $21, 000, Interest Rate 11%, Time 240 days (use ordinary interest) On 100th day, $8,000 On 180th day, $4,500 Partial payments: a. Use the U.S. Rule to solve for total interest cost. (Use 360 days a year. Do not round intermediate calculations. Round your answer to the nearest cent.) Total interest cost %24 b. Use the U.S. Rule to solve for balances. (Use 360 days a year. Do not round intermediate calculations. Round your answer to the nearest cent.) On 100th day On 180th day Balance after the payment 2$ 24 c. Use the U.S. Rule to solve for final payment. (Use 360 days a year. Do not round intermediate calculations. Round your answer to the nearest cent.) Final payment %24 5 of 14 Next > < Prev
AmountFinanced Number ofPayments MonthlyPayment FinanceCharge APR $18,300 72 $426.08 $ %
Ee 68.
5: Calculate Interest Coverage Ratio from the following information Net Profit (after taxes) Rs. 1,00,000 Fixed interest charges on long term borrowing = Rs. 20,000 Rate of Income Tax 50%
Find the ordinary interest on 28,700 pesos at 7.3% in 156 days. A. PhP. 907.88 B. PhP. 904.88 C. PhP. 901.88 Answer:
Find A and B Principal $8,425 Interst rate: 8.2% Time 60 days Simple Interest: A Total Amount owed: B

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