please help answer (#2 only) 8:19ull LTEe bbhosted.cuny.edu – Private3 of 4Present Value of an Ordinary Annuity of 1PVF-OAn,i=1-14-)ni(n) Periods2%2Â¼%3%4%5%6%1.98039.97561.97087.96154 95238 9434021.94156 1.92742 1.91347 1.88609 1.85941 1.8333932.88388 2.85602 2.82861 2.77509 2.72325 2.6730143.80773 3.76197 3.71710 3.62990 3.54595 3.4651154.71346 4.64583 4.57971 4.45182 4.32948 4.2123665.60143 5.50813 5.41719 5.24214 5.07569 4.917326.47199 6.34939 6.23028 6.00205 5.78637 5.5823887.32548 7.17014 7.01969 6.73274 6.46321 6.2097998.16224 7.97087 7.78611 7.43533 7.10782 6.80169108.98259 8.75206 8.53020 8.11090 7.72173 7.36009Present Value of an Annuity Due of1PVF-ADn,i=1+1-4-»-ti(n) Periods2%2Â¼% 3%4%5%6%11.00000 1.00000 1.00000 1.00000 1.00000 1.000001.98039 1.97561 1.97087 1.96154 1.95238 1.9434032.94156 2.92742 2.91347 2.88609 2.85941 2.8333943.88388 3.85602 3.82861 3.77509 3.72325 3.673014.80773 4.76197 4.71710 4.62990 4.54595 4.4651165.71346 5.64583 5.57971 5.45182 5.32948 5.212366.60143 6.50813 6.41719 6.24214 6.07569 5.9173287.47199 7.34939 7.23028 7.00205 6.78637 6.5823898.32548 8.17014 8.01969 7.73274 7.46321 7.20979109.16224 8.97087 8.78611 8.43533 8.10782 7.80169Present Value of 1 (Present Value of a Single Sum)PVFN,i=1(1+i)«=(1+i)-n(n) Periods 2% 2Â¼% 3%4%5%6%1.98039 .97561 .97087 .96154 .95238 .943402.96117.95181 .94260 .92456 .90703 .890003.94232 .92860 .91514 .88900 .86384 .83962.92385 .90595 .88849 .85480 .82270 .79209.90573 .88385 ,86261 ,82193 ,78353 7472688797 ,86230 83748.79031.746Z2 .70496 Problem #1Jay Company, as lessee, enters into a lease agreement on January 1, 2020, to lease equipment.The following data are relevant to the lease agreement.The term of the noncancellable lease is three years, with no renewal option. Payments of$12,000 are due on January 1, of each year.The fair value of the equipment on January 1, 2020 is $35,000. The equipment has anestimated economic life of five years, and an unguarenteed residual value of $4,000.The equipment reverts back to the lessor at the termination of the lease and is expected tohave use to the lessor.The lessee is aware that the lessor used an implicit rate of 6%.(Present Value & Future Value Tables are provided on pages 3 and 4)Instructions:1. Indicate the type of lease Jay has entered into and why (include a list of the CapitalLease Criteria)(Present Value & Future Value Tables are provided on pages 3 and 4)2. Prepare the journal entries on Jay's books related to the lease agreement for thefollowing dates: (round all amounts to the nearest dollar. Include a partial amortizationschedule)a. January 1, 2020b. December 31, 2020c. January 1, 2021

The lists of capital lease criteria are as follows: The present value of lease covers almost the fair value of lease assets. The lease period covers substantial period of economic period of lease. The leasee can purchase the leased assets at the end of the lease period. The leased assets can renew the lease period at lease payment that is low the fair value of lease.Present value of lease liability is as follows: Resultant table:Repayment schedules are as follows: Resultant table:Journal entry is as follows: Resultant table:

Business

Accounting

Jay Company, as lessee, enters into a lease agreement on January 1, 2020, to lease equipment. The following data are relevant to the lease agreement. The term of the noncancellable lease is three years, with no renewal option. Payments o $12,000 are due on January 1, of each year. The fair value of the equipment on January 1, 2020 is $35,000. The equipment has an estimated economic life of five years, and an unguarenteed residual value of $4,000. The equipment reverts back to the lessor at the termination of the lease and is expected have use to the lessor. The lessee is aware that the lessor used an implicit rate of 6%. (Present Value & Future Value Tables are provided on pages 3 and 4) Instructions: 1. Indicate the type of lease Jay has entered into and why (include a list of the Capital Lease Criteria) (Present Value & Future Value Tables are provided on pages 3 and 4) 2. Prepare the journal entries on Jay's books related to the lease agreement for the following dates: (round all amounts to the nearest dollar. Include a partial amortization schedule) a. January 1, 2020 b. December 31, 2020 c. January 1, 2021

Jay Company, as lessee, enters into a lease agreement on January 1, 2020, to lease equipment. The following data are relevant to the lease agreement. The term of the noncancellable lease is three years, with no renewal option. Payments o $12,000 are due on January 1, of each year. The fair value of the equipment on January 1, 2020 is $35,000. The equipment has an estimated economic life of five years, and an unguarenteed residual value of $4,000. The equipment reverts back to the lessor at the termination of the lease and is expected have use to the lessor. The lessee is aware that the lessor used an implicit rate of 6%. (Present Value & Future Value Tables are provided on pages 3 and 4) Instructions: 1. Indicate the type of lease Jay has entered into and why (include a list of the Capital Lease Criteria) (Present Value & Future Value Tables are provided on pages 3 and 4) 2. Prepare the journal entries on Jay's books related to the lease agreement for the following dates: (round all amounts to the nearest dollar. Include a partial amortization schedule) a. January 1, 2020 b. December 31, 2020 c. January 1, 2021

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

kindly post the solution to the question thanks
i cant find the answer on the site
Please provide answer to questions a to c
Is there a way you can provide an example for number 3?
Please provide solutions to sub parts 4 to 7
I need help with questions 1 and 2
What number is cell D4 referring to on the first part of the question?
since due to Q&A guidelines, you must answer the first three sub-parts, could you please answer to questions 4, 5 and 6, please? thank you
Would you please provide the answer for #4 as well? Thank you!
Please answer section d) only
please do 7.4 -7.5 thank you .
Fans Company has two service departments-product design and engineering support, and two production departments - assembly and finishing. The distribution of each service department's efforts to the other departments is shown below: Design SERVICE DEPARTMENT Product Design 0% Engineering Support 20% The direct operating costs of the departments (including both variable and fixed costs) were as follows: Product Design Engineering Support Assembly Finishing Multiple Choice $1,863,265 SERVICES PROVIDED TO Support 10% 0% $623,878 $1,036,122 Assembly 30% 45% $100,000 $ 200,000 $540,000 $ 820,000 The total cost accumulated in the assembly department using the reciprocal method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar) Finishing 60% 35% D