**Lease Details and Journal Entry Instructions**Chance Enterprises leased equipment from Third Bank Leasing on January 1, 2021. Chance chose the short-term lease option, with adjusting entries made annually.**Related Information:**- Lease Term: 1 year (12 monthly periods)- Monthly Lease Payments: $78,000 from Jan. 1, 2021, through Dec. 1, 2021- Economic Life of Asset: 5 years- Interest Rate Charged by the Lessor: 9%**Requirements:**Prepare appropriate entries for Chance from the beginning of the lease through April 1, 2021. If no entry is necessary, select "No journal entry required" in the first account field. Answers should be rounded to the nearest whole dollar.**Journal Entry Worksheet:**- **Instructions:** Record the beginning of the lease for Chance.- **Note:** Enter debits before credits.1. Date: January 01, 2021 - General Journal: [Fields for entry] - Debit: [Field for amount] - Credit: [Field for amount]**Buttons:**- Record Entry- Clear Entry- View General JournalThis worksheet facilitates the recording of financial transactions related to the lease agreement, ensuring compliance with accounting standards.

Lease - The details of rental agreements for both real estate and personal items are stated in…

Chance Enterprises leased equipment from Third Bank Leasing on January Appropriate adjusting entries are made annually. Related Information: Lease term Monthly lease payments Economic life of asset Interest rate charged by the lessor 1 year (12 monthly period $78,000 at Jan. 1, 2021, 5 years 9% Required: Prepare appropriate entries for Chance from the beginning of the lease thr select "No Journal entry required" In the first account transaction/event, amount.)

Chance Enterprises leased equipment from Third Bank Leasing on January Appropriate adjusting entries are made annually. Related Information: Lease term Monthly lease payments Economic life of asset Interest rate charged by the lessor 1 year (12 monthly period $78,000 at Jan. 1, 2021, 5 years 9% Required: Prepare appropriate entries for Chance from the beginning of the lease thr select "No Journal entry required" In the first account transaction/event, amount.)

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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please give narrations for each entry use commas and dollar sign no copy paste answer step by step
Manufacturers Southern leased high-tech electronic equipment from International Machines on January 1, 2021. International Machines manufactured the equipment at a cost of $92,000. Manufacturers Southern's fiscal year ends December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Related Information: Lease term 2 years (8 quarterly periods) Quarterly rental payments $18,000 at the beginning of each period Economic life of asset 2 years Fair value of asset $134,496 Implicit interest rate 8% Required:1. Show how International Machines determined the $18,000 quarterly lease payments.2. Prepare appropriate entries for International Machines to record the lease at its beginning, January 1, 2021, and the second lease payment on April 1, 2021.
The following facts pertain to a non-cancelable lease agreement between Faldo Leasing Company and Vance Company, a lessee. Commencement date January 1, 2020 Annual lease payment due at the beginning of each year, beginning with January 1, 2020 $113,864 Residual value of equipment at end of lease term, guaranteed by the lessee $50,000 Expected residual value of equipment at end of lease term $45,000 Lease term 6 years Economic life of leased equipment 6 years Fair value of asset at January 1, 2020 $600,000 Lessor's implicit rate 8% Lessee's incremental borrowing rate 8% 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. Instructions a. Prepare an amortization schedule that would be suitable for the lessee for the lease term. b. Prepare all of the journal entries for the lessee for 2020 and 2021 to record the lease agreement, the lease…
Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2016. Edison purchased the equipment from International Machines at a cost of $250,177. Manufacturers Southern elected the short-term lease option. Appropriate adjusting entries are made annually. Related Information: Lease term 1 years (4 quarterly periods) Quarterly lease payments $15,000 at Jan. 1, 2016, and at Mar. 31, June 30, Sept. 30 Economic life of asset 5 years Interest rate charged by the lessor 8% Required: 1. Prepare appropriate entries for Manufacturers Southern from the beginning of the lease through December 31, 2016.
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Applying New Lease Accounting Standards for Operating Leases On January 1 of the current year, CCH Corporation entered into the following lease contract. Based on the facts, CCH Corporation classifies the lease as an operating lease. Details of lease contract Leased asset Office space Lease term 5 years Annual lease payment $115,487 Upfront fees $10,000 Cost of debt capital 5% a. Determine the amount of the lease liability that CCH will add to its balance sheet at the inception of the lease. Amount of lease liability b. What amount will be added to the balance sheet as an asset? Amount added as an asset The rest of the questions are given in pictures below. please answer all parts correctly. i will upvote. thank you!!
Manufacturers Southern leasedhigh tech electronics equipment from international machines on January 1, 2024. international machines manufactured the equipment at a cost of $89,000. Manufacturers Southern's fiscal year ends December 31. Manufacturers Southern's fiscal year ends December 31. Lease term 2 years (8 quarterly periods) Quarterly rental payments $16,000 at the beginning of each period Economic life of asset 2 years Fair value of asset $117,590 Implicit interest rate 10% Required: 1. Show how International Machines determined the $16,000 quarterly lease payments. 2. Prepare appropriate entries for International Machines to record the lease at its beginning, January 1, 2024, and the second lease payment on April 1, 2024
On January 1, 2021, Robertson Construction leased several items of equipment under a two-year operating lease agreement from Jamison Leasing, which routinely finances equipment for other firms at an annual interest rate of 4%. The contract calls for four rent payments of $47,000 each, payable semiannually on June 30 and December 31 each year. The equipment was acquired by Jamison. Leasing at a cost of $367,000 and was expected to have a useful life of five years with no residual value. Both firms record. amortization and depreciation semi-annually. Required: Prepare the appropriate journal entries for the lessor (Jamison Leasing) from the beginning of the lease through the end of 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Please i need both parts correct and only handwritten will upvote
Provide all journal entries that Kelly K. inc. will record over the whole term of the lease.
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