I need answer of this question solution general accounting On April 1, 2016, Maine Corporation paid $9,300 cash inadvance for a one-year lease on an office building. Assumethat Maine records the prepaid rent as an asset and that thebooks are closed on December 31.Show the payment for the one-year lease and the relatedadjusting entry to recognize rent expense in the accountingequation.

Step 1: Define Accounting Equation:It represents the relationship between a person's assets,…

Answered: On April 1, 2016, Maine Corporation…

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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Windsor Leasing Company signs an agreement on January 1, 2020, to lease equipment to Cole Company. The following information relates to this agreement. 1. 2. 3. 4. 5. Prepare all of the journal entries for the lessor for 2020 and 2021 to record the lease agreement, the receipt of lease payments, and the recognition of revenue. Assume the lessor's annual accounting period ends on December 31, and it does not use reversing entries. (Credit account titles are automatically inden when amount is entered. Do not ind manually. Record journal entries in the order presented in the problem.) Date 20 0 /20 The term of the non-cancelable lease is 6 years with no renewal option. The equipment has an estimated economic life of 6 years. The cost of the asset to the lessor is $230,000. The fair value of the asset at January 1, 2020, is $230,000. The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $24,339, none of which is…
On October 1, 2019, Viking Trivia Company paid $72,000 for a two-year lease on an office building. The payment was recorded as prepaid rent, and the lease commenced on the date of payment. Debit Account: Debit Amount: Credit Account: Credit Amount:
CB owns an office building and leases the office spaces under a one-year rental agreement. Not all tenants make timely payments of their rent. During 2021, CB, Inc. received P800,000 from tenants. The company’s statement of financial position on December 31, 2020 reported Rent Receivable of P96,000 and Unearned Rent Revenue of P320,000. The statement of financial position on December 31, 2021 and income statement for the year ended December 31, 2021 reported Rent Receivable and Rent Revenue of P124,000 and P908,000, respectively. How much was CB’s unearned rent revenue on December 31, 2021?
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On January 1, 2016, Byner Company purchased a used tractor. Byner paid $5,000 down and signed a noninterestbearing note requiring $25,000 to be paid on December 31, 2018. The fair value of the tractor is not determinable. An interest rate of 10% properly reflects the time value of money for this type of loan agreement. The company’s fiscal year-end is December 31. Required: 1. Prepare the journal entry to record the acquisition of the tractor. Round computations to the nearest dollar. 2. How much interest expense will the company include in its 2016 and 2017 income statements for this note? 3. What is the amount of the liability the company will report in its 2016 and 2017 balance sheets for this note?
On October 1, 2017, Trend Sound System Company leased office space at a monthly rental of P30,000 for 10 years expiring September 30, 2027. As an inducement for Trend to enter into a lease, the lessor permitted Trend to occupy the premises rent-free from October 1 to December 31, 2017. Improvements were made at the leased office at a total cost of P300,000, the improvements were finished on October 31, 2017. It was estimated that the improvements will be useful for 5 years. For the year ended December 31, 2017, Trend should record total expenses related to the lease facilities of10,00087,75097,750100,000
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Connors Company paid $700 cash to make a repair on equipment it sold under a oneyear warranty in the prior year. The entry to record the payment will debita. Accrued Warranty Payable and creditCash.b. Operating Expense and credit Cash.
Chance Enterprises leased equipment from Third Bank Leasing on January 1, 2021. Chance elected the short-term lease option. Appropriate adjusting entries are made annually. Related Information: Lease term Monthly lease payments Economic life of asset Interest rate charged by the lessor Required: Prepare appropriate entries for Chance from the beginning of the lease through April 1, 2021. (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 Journal entry worksheet 1 Note: Enter debits before credits. Record the beginning of the lease for Chance. Date January 01, 2021 5 Record entry 1 year (12 monthly periods) $78,000 at Jan. 1, 2821, through Dec. 1, 2821. 5 years 9% General Journal Clear entry Debit Credit View general Journal

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