None Kingbird Company manufactures a check-in kiosk with an estimated economic life of 12 years and leases it to National Airlines for aperiod of 10 years. The normal selling price of the equipment is $304,659, and its unguaranteed residual value at the end of the leaseterm is estimated to be $19.400. National will pay annual payments of $40,800 at the beginning of each year. Kingbird incurred costsof $164,100 in manufacturing the equipment and $3,900 in sales commissions in closing the lease. Kingbird has determined that thecollectibility of the lease payments is probable and that the implicit interest rate is 8%.Click here to view factor tables.(a)Your answer is partially correct.Discuss the nature of this lease in relation to the lessor.This is a sales-type leaseCompute the amount of each of the following items. (Round present value factor calculations to 5 decimal places, eg. 1.25124 and thefinal answers to O decimal places, eg. 5,275)(1)Lease receivable$(2)Sales price304659304659(3)Cost of salesS159014eTextbook and MediaList of Accounts

Lease will be categorized as "Selling Type lease". This is because the lease term of the asset is…

Compute the amount of each of the following items. (Round present value f final answers to O decimal places, eg. 5,275.) (1) Lease receivable S 304659 (2) Sales price $ 304659 (3) Cost of sales S 159014

Compute the amount of each of the following items. (Round present value f final answers to O decimal places, eg. 5,275.) (1) Lease receivable S 304659 (2) Sales price $ 304659 (3) Cost of sales S 159014

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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D. February 2 Issue 1.5 million shares of common stock for $15 per share. February 4 Issue 400,000 shares of preferred stock for $24 per share. June 15 Purchase 150,000 shares of its own common stock for $10 per share. August 15 Resell 112,500 shares of treasury stock for $25 per share. November 1 Declare a cash dividend on its common stock of $1.50 per share and a $400,000 (5% of par value) cash dividend on its preferred stock payable to all stockholders of record on November 15. (Hint: Dividends are not paid on treasury stock.) November 30 Pay the dividends declared on November 1. Required: 1. Record each of these transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list ces Journal entry worksheet 1 Record the issuance of 1.50 million shares of common stock for $15 per share. Note: Enter debits before credits. Date General Journal Debit Credit February 02, 2021
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