Coco rented a building on 7/1/2019 by signing a one year lease and making one upfront annual payment of $18,000 in cash at that time. what is the adjusting entry?
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Coco rented a building on 7/1/2019 by signing a one year lease and making one upfront annual payment of $18,000 in cash at that time.
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- Pinky Enterprises entered into a real estate lease agreement for a new building on March 1, 2023. The lease is an operating lease and is fully executed on that day. Recognizing that it will take a few months for business to be in full swing, Pinky was able to negotiable for 6 months of free rent before rent payments will commence. Accordingly, the terms of the lease require Pinky to make 54 consecutive payments of $24,600 per month beginning on September 1, 2023. The lease term spans five years. Pinky's financial year-end is December 31, 2023. What amount will Pinky record as its lease expense with respect to this building for the year ended December 31, 2023? a. $221,400 O b. $199,260 O c. $98,400 O d. $246,000When is a home considered under contract? When the buyer qualifies for a loan When the seller and buyer have signed the offer When the buyer signs the seller's offer When the 10-day option period is overOn January 1, 2020, Mr. Ray Holland leases an automobile to be used 100 percent of the time in his unincorporated business. The lease cost is $940 per month. The manufacturer's suggested list price for the automobile is $101000. Mr. Holland makes no down payment and no refundable deposits. Determine his maximum deduction for lease payments for 2020. Ignore GST and PST considerations.
- On December 1, 2020, Carlos entered into a lease on a building for use in his business for $1,500 per month. Under the lease terms, Carlos pays 12 months’ rent ($18,000) in advance on December 1. How much can Carlos deduct for rent in 2020? a. $18,000 b. $1,000 c. $13,000 d. $12,000On July 1, 2020, Shroff Company leased a warehouse building under a 10-year lease agreement. The lease requires quarterly lease payments of $4,500. The first lease payment is due on September 30, 2020. The lease was reported as a finance lease using an 8% annual interest rate. a. Prepare the journal entry to record the commencement of the lease on July 1, 2020. b. Prepare the journal entries that would be necessary on September 30 and December 31, 2020. c. Post the entries from parts a and b in their appropriate T-accounts. d. Prepare a financial statement effects template to show the effects template to show the effects of the entries from parts a and b on the balance sheet and income statement.On March 1, 2023, Dak Prescott leases and places in service a passenger automobile. The lease will run for five years and the payments are $500 per month. During 2023, he uses his car 60% for business and 40% for personal activities. Assuming the dollar amount from the IRS table for auto leases is $70, determine Dak's gross income attributable to the lease. The car was in service for 305 out of 365 days. a. $0 b. $35 c. $59 d. $70
- Jackson, Inc., an engineering consulting firm, uses the cash method of accounting and is a calendar year taxpayer. Read the requirement. Compute the amount of Jackson's current year deductions for the following transactions: (Enter a "0" if no current year deduction is allowed.) a. On November 1 of the current year, it entered into a lease to rent some office space for five years. The lease agreement states that the lease payments are $14,400 per year, payable in advance each November 1 for the following 12-month period. Under the terms of the lease, Jackson is required to pay a $2,500 deposit, refundable upon the termination of the lease. The deduction amount for transaction a. isOn January 1, 2024, Stone leased an office building. Terms of the lease require Stone to make 20 annual lease payments of $124, 000 beginning on January 1, 2024. An 11% interest rate is implicit in the lease agreement. At what amount should Stone record the lease liability on January 1, 2024, before any lease payments are made? Note: Round your final answers to nearest whole dollar amount. Show less Table, Excel, or calculator function Table, Excel, or calculator function: Payment: n = i : Liability: =Beth borrows $7000 on September 20, 2019 at 12% monthly. What will she owe on March 17, 2021?
- Scupper Farms, the lessee, and Tyrrell Equipment, the lessor, sign a lease agreement on January 1, 2019, that provides for Scupper to lease a cultivator from Tyrrell. The lease terms, provisions, and other related events are as follows: The lease is noncancelable and has a term of 6 years. The annual rentals are $55,000 payable at the beginning of each year. Scupper agrees to pay all executory costs directly to a third party, which are expected to be $1,100 annually, including property taxes of $500, insurance of $350, and maintenance of $250. These costs are paid each year on November 1. The cultivator has an estimated economic life of 6 years. Scupper guarantees a residual value of $60,000 at the end of 6 years. Scupper believes it is probable that it will pay $15,000 cash as a result of this guarantee. The interest rate implicit in the lease is 14%, which is known by Scupper. Scupper’s incremental borrowing rate is 15%, and it uses the sum-of-the-years’-digits method to record…On January 1, 2020, a lessee leased an office space with 2 floors, for P1,000,000 payable every January 1, starting next year. The lease term was 3 years, while the useful life of the office space was 4 years. The lessee paid P100,000 as lease bonus. The lessor also reimbursed P30,000 to the lessee. The implicit interest rate is 8% On January 1,2022, due to financial difficulties, the lessee and the lessor agreed to modify the lease as follows: - Only 1 floor will be rented. -The annual lease payments will be reduced to P400,000 -The lease term will be extended for 2 more years -The incremental borrowing rate at this date is 10% QUESTION 1: How much is the interest expense for 2021? QUESTION 2: How much is the gain or loss on partial termination as of date of modification, if any?On January 1,2019, Agri LTD sold a machine for $10,000, with a 2 year warranty guarantee that the machine was free from any defects. The customer also purchased a 1-year extended warranty for the machine for additional $50. In which year, should Agri Ltd receive the revenue earned from the 1-year extended warranty? a)2019 b) 2020 c) 2021 d) 2022 e) None of the above