Current Attempt in Progress Crane Ltd., a public company following IFRS 16, recorded a right-of-use asset and lease liability at $170,100 on May 1, 2020. The interest rate is 10% Crane made the first lease payment of $26,851 on May 1,2020. The lease requires a total of 9 annual payments. The equipment has auseful life of 9 years with noresidual value. Prepare Crane's December 31, 2020 adjusting entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts. Round answers to O decimal places, eg. 5,275) Date Account Titles and Explanation Debit Credit Dec. 31

Current Attempt in Progress Crane Ltd., a public company following IFRS 16, recorded a right-of-use asset and lease liability at $170,100 on May 1, 2020. The interest rate is 10% Crane made the first lease payment of $26,851 on May 1,2020. The lease requires a total of 9 annual payments. The equipment has auseful life of 9 years with noresidual value. Prepare Crane's December 31, 2020 adjusting entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts. Round answers to O decimal places, eg. 5,275) Date Account Titles and Explanation Debit Credit Dec. 31

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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Chance Enterprises leased equipment from Third Bank Leasing on January 1, 2018. Third Bank purchased the equipment at a cost of $1,400,000. Chance elected the short-term lease option. Appropriate adjusting entries are made annually. Related Information: 1 year (4 quarterly periods) $56,000 at Jan. 1, 2018, and at Mar. 31, June 30, and Sept. 30. 5 years Lease term Quarterly lease paymenta Economic life of asset Interest rate charged by the lessor Required: Prepare appropriate entries for Chance from the beginning of the lease through December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amount.)
*attached is the problem REQUIRED: What is the lease liability on Dec. 31, 2020? What is the lease liability to be reported as non-current on Dec 31, 2020? What is the interest expense for 2020? What is the depreciation for 2020?
On January 1, 2024, Blue Co. recorded a right-of-use asset of $869,628 in a 10-year operating lease. The lease calls for ten annual payments of $120,000 at the beginning of each year. The interest rate charged by the lessor was 8%. What amount will Blue Co. record for amortization expense on December 31, 2024? O $60,030 O $64,832 O $86,963 $59,970 ring
Metlock Corporation recordeda right-of-use asset for $268,800 as a result of a finance lease on December 31, 2019. Metlock's incremental borrowing rate is 11%, and the implicit rate of the lessor was not known at the commencement of the lease. Metlock made the first lease payment of $51,390 on on December 31, 2019. The lease requires 7 annual payments. The equipment has a useful life of 7 years with no residual value. Prepare Metlock's December 31, 2020, entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places e.g. 5,275.) Date Account Titles and Explanation Debit Credit December 31, 2020 (To record interest expense) December 31, 2020 (To record amortization of the right-of-use asset)
North Blue Company leased a new copier from Kixko Company on June 1, 2019, under a lease with the following information: Lease term 10 years Annual rental payable at the beginning of each lease year $45,000 Useful Life of machine 10 years Implicit interest rate 12% Present value factor for an annuity of 1 in advance for 10 periods at 12% 6.3282 Present Value factor for 1 for 10 periods at 12% 0.32197 North Blue has the option to purchase a machine on June 1, 2023, by paying $75,000, which approximates the fair value of the machine on the option exercise date. On May 1, 2019, North Blue should record a right-of-use asset in the amount of a.$284,769. b.$292,991. c.$450,000. d.$276,548.
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Southwestern Edison Company leased equipment from Hi-Tech Leasing on January 1, 2018. Hi-Tech manufactured the equipment at a cost of $94,500. Other information: 3 years $49,000 on January 1 each year 3 years $136, 382 Lease term Annual payments Life of asset Fair value of asset Implicit interest rate 8% Incremental rate 8% There is no expected residual value. Required: Prepare appropriate journal entries for Hi-Tech Leasing for 2018. Assume a December 31 year-end. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amounts.) View transaction list Journal entry worksheet 2 3 > Record the lease. Note: Enter debits before credits. Date General Journal Debit Credit January 01, 2018
Accounting On 1 January 2020, Halwani Construction Company entered into a two-year lease for an excavator. The contract contains an option to extend the lease term for further year. Halwani believes that it is reasonably certain to exercise this option. Excavator has a useful life of ten years Lease payments are $15,000 per year for the initial term and $22,500 per year for the option period. All payments are due at the end of the vear. To obtain the lease Halwani incurs initial direct cost of $4,500. The interest rate within the lease is not readily determinable. Halwani's incremental rate of borrowing is 5%. Required: (a) Calculate the lease liability in a proper form. (b) Calculate the initial cost of the right-of-use asset. (c) Show the journal entries to record the above transactions (d) Calculate the depreciation for the year 2020 on the right of use of the asset. Show all calculation.
FRM Ltd acquired an item of equipment and enters into a non -cancellable lease agreement with FEN Equipment LTd on 1January 2015. The lease consists of the following: Date of inception. 1/1/15 Duration of Lease 4 years Life of Leased asset. 5 years Lease payments (annual) $550000(annual) which includes $80000 for Maintenance and insurance costs per annum Guaranteed residual value (Added to final payment). $190000 Interest rate. 7% Formula for PV of $1/(1+k)n Formula for present value of annuity of $1 per period for n periods= 1-1/(1+k)n /k Where k is the discount rate expressed in decimal Required 1. Determine the PV of minimum lease rental payment. 2. Prepare the journal entries for FRM Ltd (The lessee) using the Net method for the following a) Transfer of control b) Payment of annual payments for 2015 and 2016.