Homework 1 of Chapter 15.Q1. Python Company leased equipment from Hope Leasing on January 1, 2020. Hope recentlypurchased the equipment at a cost of $222,664.Other information:Lease termAnnual paymentsLife of assetFair value of asset3 years$80,000 on January 1 each year3 уears$222,6648%8%Implicit interest rateIncremental rateThere is no expected residual value.Required:1) Show how Hope determined the $80,000 annual lease payments.Fair Value: 3 aaa, o loH- Present Valuee2) Prepare appropriate journal entries for Hope for 2020 and 2021. Round your answers tothe nearest whole dollar amounts. Prepare an amortization schedule for Hope.OutstandingBalance (leasereceivable)222. tolo4EffectiveInterestRevenueDecrease inBalanceDateCashPayments1/1/20201/1/202012/31/202012/31/202180.00080.000$0.000gross lease investment

The question is related to Accounting for Lease. In the given question Hope is lessor and the…

Answered: Homework 1 of Chapter 15. Q1. Python…

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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Lansing East leased high-tech electronic equipment from Davis Computing on January 1, 2021. Davis Computing manufactured the equipment at a cost of $42,500. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Related Information: Lease term Quarterly rental payments Economic life of asset Fair value of asset Implicit interest rate 2 years (8 quarterly periods) $7,500 at the beginning of each period 2 years $56,040 8% Required: 1. Show how Davis Computing determined the $7,500 quarterly rental payments. 2. Prepare appropriate journal entries for Davis Computing to record the lease at its beginning, January 1, 2021, and the second lease payment on April 1, 2021.
Fitbit Ltd has leased a machine on the following terms: Date of entering lease 1 July 2019 Duration of lease 5 years Life of asset 6 years Unguaranteed residual value $40,000 Lease payments inception (at the start) $60,000 Annual payments (5) $65,000 Implied rate 11.0 %. Please assist to determine the Fair Value (rounded off) of the leased asset. Thanks
19. On January 2, 2022, Sylvester Metals Co. leased a mining machine from EDH Leasing Corp. Assume the lease qualifies as an operating lease under ASPE standards. The annual payments are $4,000 paid at the end of each year, and the life of the lease is 10 years. What entry would Sylvester make when the machine is delivered by EDH? a. Leased Assets40,000 Lease Liability40,000 b. Leased Assets40,000 Prepaid Rent40,000 c.No entry is necessary. d. Prepaid Rent40,000 Lease Liability40,000
Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2024. Edison purchased the equipment from International Machines at a cost of $117,772. 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 Quarterly rental payments Economic life of asset Fair value of asset Implicit interest rate (Also lessee's incremental borrowing rate) Required: Prepare a lease amortization schedule and appropriate entries for Manufacturers Southern from the beginning of the lease through January 1, 2025. Amortization is recorded at the end of each fiscal year (December 31) on a straight-line basis. Amortiz... General Schedule Journal Answer is not complete. Complete this question by entering your answers in the tabs below. No 1 Record the appropriate entries for Manufacturers Southern from the beginning of the lease through January 1, 2025. Amortization is recorded at…
Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2024. Edison purchased the equipment from International Machines at a cost of $135,990. Note: Use tables, Excel, or a financial calculator. (FV of $1. PV of $1. EVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) Related Information: Lease term Quarterly rental payments Economic life of asset 2 years (8 quarterly periods) years $ 18,200 at the beginning of each period 2 $ 135,990 Implicit interest rate (Also Fair value of asset lessee's incremental borrowing rate) 8% Required: Prepare a lease amortization schedule and appropriate entries for Manufacturers Southern from the beginning of the lease through January 1, 2025. Amortization is recorded at the end of each fiscal year (December 31) on a straight-line basis. Complete this question by entering your answers in the tabs below. Amortization Schedule General Journal Prepare a lease amortization schedule for the term of the lease for…
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Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2021. Edison purchased the equipment from International Machines at a cost of $114,321. (FV of $1, PV of $1, FVA of $1, PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Related Information: Lease term Quarterly rental payments. Economic life of asset Fair value of asset Implicit interest rate (Also lessee's incremental borrowing rate) Required: Prepare a lease amortization schedule and appropriate entries for Edison Leasing from the beginning of the lease through January 1, 2022. Edison's fiscal year ends December 31. Complete this question by entering your answers in the tabs below. Amort Schedule Payment Date 01/01/2021 01/01/2021 04/01/2021 07/01/2021 10/01/2021 01/01/2022 04/01/2022 07/01/2022 10/01/2022 General Journal Prepare a lease amortization schedule for Edison Leasing from the beginning of the lease through January 1, 2022. Edison's fiscal…
On December 31, 2022, Day Company leased a new machine from Parr with the following pertinent information: Lease term 6 years 500,000 8 years 12% Annual rental payable in beginning of each year Useful life of machine Implicit interest rate in lease Present value of an annuity of 1 in advance for 6 periods at 12% Present value of an ordinary annuity of 1 for 6 periods at 12% 4.60 4.11 The lese is not renewable, and the machine reverts to Parr at the termination of the lease. The cost of the machine on Parr's accounting records is P3,755,000. At the beginning of the lease term, Day should record a lease liability of a. 2,055,000 b. 2,300,000 c. 3,755,000 d. 2,800,000
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Please answer all parts quick. make sure the answer is 100% correct and is presented in good formatting. 1- On 1/31/Y5, Zeus Company leased a new machine from Thor Corp. The following data relate to the lease transaction at its inception: Lease term 5 years Annual rental payable at beginning of each lease year $30,000 Useful life of machine 10 years Implicit interest rate 8% Present value of an annuity of 1 in advance for 5 periods at 8% 4.3121 Present value of annuity of 1 in arrears for 5 periods at 8% 3.9927 Fair value of the machine $200,000 The lease has no renewal option, the possession of the machine reverts to Thor when the lease terminates, and the machine does have alternative uses. The first lease payment of $30,000 is paid at the inception of the lease. What is the amount of lease liability recorded by Zeus at the inception of the lease? Group of answer choices $200,000 $129,363 $119,789 $0, because it does not meet the lease criteria for a finance…

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