- Burgess Limited accepts a lease incentive to enter into a 3-year operating lease for a building. The incentive is a cash amount of P15,000 received on signing of the lease agreement. The effect of this lease incentive on the annua lease expense of the lessee is O A P15,000 decrease B P5,000 increase O C P5,000 decrease No answer given

- Burgess Limited accepts a lease incentive to enter into a 3-year operating lease for a building. The incentive is a cash amount of P15,000 received on signing of the lease agreement. The effect of this lease incentive on the annua lease expense of the lessee is O A P15,000 decrease B P5,000 increase O C P5,000 decrease No answer given

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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The following facts pertain to a non-cancelable lease agreement between X leasing co and S company a lessee commencement date may 1, 2020 annual lease payment due at the beginning of each year beginning may 1 2020. was $19,656,69 Bargian purchase option price at end of lease term $7000 lease term 5 year life of equipment 10 years lessors cost $65,000 fair value $93,000 lessors implict rate 6% lessees incremental borrowing rate 6% Prepare the journal entry on the lesseesbooks for 2020 and 2021; i have journal entries done but some things wrong Dr.right of asset 93000 cr Lease liability 93,000 to record lease lease liablitiy 19656.69 cr.cash 19656.69 to record te first lease payment Dr. interest expen AMOUNT i have wrong???cr. ______I have wrong 2021 Journal entries????
Aa.31.
2..new..B...continues The following facts pertain to a non-cancelable lease agreement between Faldo Leasing Company and Crane Company, a lessee. Commencement date January 1, Annual lease payment due at the beginning of each year, beginning with January 1, $104,218 Residual value of equipment at end of lease term, guaranteed by the lessee $51,000 Expected residual value of equipment at end of lease term $46,000 Lease term 6 years Economic life of leased equipment 6 years Fair value of asset at January 1, $540,000 Lessor’s implicit rate 9 % Lessee’s incremental borrowing rate 9 % The asset will revert to the lessor at the end of the lease term. The lessee uses the straight-line amortization for all leased equipment.Click here to view factor tables. Prepare all of the journal entries for the lessee for and to record the lease agreement, the lease payments, and all expenses related to this lease. Assume the lessee’s annual…
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Please I need fast please check plagiarism
2...new.continue...c The following facts pertain to a non-cancelable lease agreement between Faldo Leasing Company and Crane Company, a lessee. Commencement date January 1, Annual lease payment due at the beginning of each year, beginning with January 1, $104,218 Residual value of equipment at end of lease term, guaranteed by the lessee $51,000 Expected residual value of equipment at end of lease term $46,000 Lease term 6 years Economic life of leased equipment 6 years Fair value of asset at January 1, $540,000 Lessor’s implicit rate 9 % Lessee’s incremental borrowing rate 9 % The asset will revert to the lessor at the end of the lease term. The lessee uses the straight-line amortization for all leased equipment. Suppose Crane received a lease incentive of $5,000 from Faldo Leasing to enter the lease. How would the initial measurement of the lease liability and right-of-use asset be affected? Right-of-use asset $enter a…
am. 101.
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ANSWER LETTER F ONLY ! ANSWER LETTER F ONLY ! ANSWER LETTER F ONLY ! ANSWER LETTER F ONLY ! Can you show also amortization table. I will give upvote if you do. Thank you!
*see attached What is the total unearned interest income? a. 3,052,705b. 2,652,705c. 2,252,705d. 6,000,000
Company A leases a motor vehicle from Company B.• The lease became effective 1 January 2014 and the lease term is for 4 years.• The annual lease payments are 10 000 per annum, in arrears.• There is no option of renewal (of the lease agreement).• The implicit interest rate is 10%.• The fair value of the motor vehicle at 1 January 2014 is 31,700. Required:For each of the scenarios below, discuss whether or not the above lease agreementconstitutes a finance lease: Scenario 1: The useful life of the motor vehicle is 8 years. At the end of the lease period,ownership of the motor vehicle transfers from Company B to Company A.  Scenario 2: The useful life of the motor vehicle is 4 years. At the end of the lease period,ownership of the motor vehicle remains with Company B.  Scenario 3: If the lease payments per annum is $5,000 and the useful life of the vehicle is8 years.
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