Eye Deal Optometry leased vision-testing equipment from Insight Machines on January 1, 2024. Insight Machines manufactured the equipment at a cost of $200,000 and lists a cash selling price of $250,177. Appropriate adjusting entries are made quarterly. Note: Use tables, Excel, or a financial calculator. (FV of $1. PV of $1, FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) Related Information: Lease term 5 Quarterly lease payments Economic life of asset Interest rate charged by the lessor Required: 1. Prepare appropriate entries for Eye Deal to record the arrangement at its beginning, January 1, 2024, and on March 31, 2024. 2. Prepare appropriate entries for Insight Machines to record the arrangement at its beginning, January 1, 2024, and on March 31, 2024 $15,000 years (20 quarterly periods) at January 1, 2024, and at March 31, June 30, September 30, and December 31 thereafter years 5 8%

Eye Deal Optometry leased vision-testing equipment from Insight Machines on January 1, 2024. Insight Machines manufactured the equipment at a cost of $200,000 and lists a cash selling price of $250,177. Appropriate adjusting entries are made quarterly. Note: Use tables, Excel, or a financial calculator. (FV of $1. PV of $1, FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) Related Information: Lease term 5 Quarterly lease payments Economic life of asset Interest rate charged by the lessor Required: 1. Prepare appropriate entries for Eye Deal to record the arrangement at its beginning, January 1, 2024, and on March 31, 2024. 2. Prepare appropriate entries for Insight Machines to record the arrangement at its beginning, January 1, 2024, and on March 31, 2024 $15,000 years (20 quarterly periods) at January 1, 2024, and at March 31, June 30, September 30, and December 31 thereafter years 5 8%

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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Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank in the amount of $550,000. The terms of the loan are 3.7% annual interest rate and payable in 8 months. Interest is due in equal payments each month. A. Compute the interest expense due each month. If required, round final answer to two decimal places. $fill in the blank 923b18021034fe7_1 B. Show the journal entry to recognize the interest payment on October 20, and the entry for payment of the short-term note and final interest payment on May 20. If required, round final answers to two decimal places. If an amount box does not require an entry, leave it blank. Oct. 20 fill in the blank 848f66019ffe028_2 fill in the blank 848f66019ffe028_3 fill in the blank 848f66019ffe028_5 fill in the blank 848f66019ffe028_6 May 20 fill in the blank 848f66019ffe028_8 fill in the blank 848f66019ffe028_9 fill in the blank 848f66019ffe028_11 fill in the blank…
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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 periode) $56,000 at Jan. 1, 2018, and at Mar. 31, June 30, and Sept. 30. 5 years Lease term Quarterly lease payments Economic lite of anset Interent 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.) View transaction list
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