Prepare all of the journal entries for the lessee for 2020 and 2021 to record the lease agreement, the lease payments, and allexpenses related to this lease. Assume the lessee's annual accounting period ends on December 31. (Credit account titles areautomatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g.5,265. Record journal entries in the order presented in the problem.)DateAccount Titles and ExplanationDebitCredit(To record the lease)(To record lease payment)(To record interest expense)(To record amortization of the right-of-use asset)(To reverse interest expense)(To record lease payment)(To record interest expense)(To record amortization of the right-of-use asset)eTextbook and MediaList of Accounts Current Attempt in ProgressLaura Leasing Company signs an agreement on January 1, 2020, to lease equipment to Skysong Company. The following informationrelates to this agreement.1.The term of the non-cancelable lease is 3 years with no renewal option. The equipment has an estimated economic life of 5years.2.The fair value of the asset at January 1, 2020, is $66,000.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 valueof $5,000, none of which is guaranteed.3.4.The agreement requires equal annual rental payments of $21,328 to the lessor, beginning on January 1, 2020.5.The lessee's incremental borrowing rate is 5%. The lessor's implicit rate is 4% and is unknown to the lessee.6.Skysong uses the straight-line depreciation method for all equipment.Click here to view factor tables.(For calculation purposes, use 5 decimal places as displayed in the factor table provided.)Prepare an amortization schedule that would be suitable for the lessee for the lease term. (Round answers to 0 decimalplaces, e.g. 5,265.)SKYSONG COMPANY (Lessee)Lease Amortization ScheduleAnnual LeaseInterest onReduction of LeaseDatePaymentLiabilityLiabilityLease Liabilit1/1/20$$$1/1/201/1/211/1/22$$eTextbook and MediaList of AccountsPrepare all of the journal entries for the lessee for 2020 and 2021 to record the lease agreement, the lease payments, and allexpenses related to this lease. Assume the lessee's annual accounting period ends on December 31. (Credit account titles areautomatically indented when amount is entered, Do not indent manually, Round answers to 0 decimal places, e.g.%24%24%24%24%24

please give a like, your response matters PV of lease payments 21,328 + PV(5%,2,-21328,0,0)…

Prepare all of the journal entries for the lessee for 2020 and 2021 to record the lease agreement, the lease payments, and all expenses related to this lease. Assume the lessee's annual accounting period ends on December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,265. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record the lease) (To record lease payment) (To record interest expense) (To record amortization of the right-of-use asset) (To reverse interest expense) (To record lease payment) (To record interest expense) (To record amortization of the right-of-use asset) 11 11

Prepare all of the journal entries for the lessee for 2020 and 2021 to record the lease agreement, the lease payments, and all expenses related to this lease. Assume the lessee's annual accounting period ends on December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,265. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record the lease) (To record lease payment) (To record interest expense) (To record amortization of the right-of-use asset) (To reverse interest expense) (To record lease payment) (To record interest expense) (To record amortization of the right-of-use asset) 11 11

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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On January 1, 2025, a machine was purchased for $980,000 by Shamrock Co. The machine is expected to have an 8-year life with no salvage value. It is to be depreciated on a straight-line basis. The machine was leased to Pharoah Inc. for 3 years on January 1, 2025, with annual rent payments of $260,000 due at the beginning of each year, starting January 1, 2025. The machine is expected to have a residual value at the end of the lease term of $562,500, though this amount is unguaranteed. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) How much should Shamrock report as income before income tax on this lease for 2025? Income before income tax $
Provide all journal entries that Kelly K. inc. will record over the whole term of the lease.
When is a home considered under contract? When the buyer qualifies for a loan When the seller and buyer have signed the offer When the buyer signs the seller's offer When the 10-day option period is over
dont give ansewr in image format
On July 1, 2020, Shroff Company leased a warehouse building under a 10-year lease agreement. The lease requires quarterly lease payments of $4,500. The first lease payment is due on September 30, 2020. The lease was reported as a finance lease using an 8% annual interest rate. a. Prepare the journal entry to record the commencement of the lease on July 1, 2020. b. Prepare the journal entries that would be necessary on September 30 and December 31, 2020. c. Post the entries from parts a and b in their appropriate T-accounts. d. Prepare a financial statement effects template to show the effects template to show the effects of the entries from parts a and b on the balance sheet and income statement.
Salaur Company is evaluating a lease arrangement being offered by TSP Company for use of a computer system. The lease is noncancelable, and in no case does Salaur receive title to the computers during or at the end of the lease term. The lease starts on January 1, 2017, with the first rental payment due on January 1, 2017. Additional information related to the lease is as follows. Check the below image for additional information AccountingAnalyze the lease capitalization criteria for this lease for Salaur Company. Prepare the journal entry for Salaur on January 1, 2017.AnalysisBriefly discuss the impact of the accounting for this lease for two common ratios: return on assets and debt to total assets.PrinciplesWhat element of faithful representation (completeness, neutrality, free from error) is being addressed when a company like Salaur evaluates lease capitalization criteria?
Instructions General Journal Shaded cells have feedback. X Chart of Accounts Sax Company signs a lease agreement dated January 1, 2019, that provides for it to lease computers from Appleton Company beginning January 1, 2019. The lease terms, 4a. Prepare journal entries for Sax for the year 2019. CHART OF ACCOUNTS provisions, and related events are as follows: Sax Company 1. The lease term is 5 years. The lease is noncancelable and requires equal rental payments to be made at the end of each year. The computers General Journal Instructions General Ledger are not specialized for Sax. 2. The computers have an estimated life of 5 years, a fair value of $300,000, and a zero estimated residual value. ASSETS REVENUE How does grading work? 3. Sax agrees to pay all executory costs directly to a third party. 111 Cash 411 Sales Revenue PAGE 2019 4. The lease contains no renewal or bargain purchase options. 121 Accounts Receivable 5. The annual payment is set by Appleton at $83,222.92 to earn a…
Required information Skip to question [The following information applies to the questions displayed below.] On November 1, 2022, Gordon Company collected $9,660 in cash from its tenant as an advance rent payment on its store location. The six-month lease period ends on April 30, 2023, at which time the contract may be renewed. c. Suppose the advance collection received on November 1, 2022, covered an 24-month lease period at the same amount of rent per month. How should Gordon Company report the unearned rent amount on its December 31, 2022, balance sheet? Current liability? Noncurrent liability?
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:
Prepare all the journal entries for Scuppermong for Years 1 and 2.