Need experts solution only, Don't use AI. QUESTION 3Hossy Limited is a dealer inhospital machines, which it sells for cash or under afinance lease. Hossy Ltd sold only one hospital machinepurchased on 01 January 2020 for R250 000, in 2020.The machine was sold under a finance lease (cashprice:R384 000.10), terms of which were: ⚫Commencement date: 01 January 2020 • Lease period:5 years • Lease payments: R120 000, annually inarrears, payable on 31 December of eainterest and market interest applicableyear. • Implicit16,9911%Required: Prepare Hossy Ltd's journals for each of theyears ended 31 December 2015 to 2019. Using Grossmethod. Answer must be in 2 decimal places.

Step 1: Year 2020: Beginning balance: R384,000.10 Interest for 2020: R384,000.10×0.169911=R65,859.02…

Answered: QUESTION 3 Hossy Limited is a dealer in…

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

On the 31 December 2015, Nhyiraba Limited leased a machine for a project from Manii Limited up until 31 December 2020. There was no known interest rate in the contract agreement but Nhyiraba Limited’s current cost of borrowing stood at 5 percent with a present value interest factor of an annuity (PVIFA) 2.50. The annual lease payment of R150,000 payable in advance was applied Prepare a financial statement extract (income statement and SOFP) for the above transactions
do not give solution in image format
On the 31 December 2015, Nhyiraba Limited leased a machine for a project from Manii Limited up until 31 December 2020. There was no known interest rate in the contract agreement but Nhyiraba Limited’s current cost of borrowing stood at 5 percent with a present value interest factor of an annuity (PVIFA) 2.50. The annual lease payment of R150,000 payable in advance was applied Show the finance lease liability to be presented on the financial statements
Smart Ltd negotiated a lease for equipment on the following terms: the lease had a 3 year term; the purchase price of the new equipment was R41 250; there were to be 3 annual payments of R15 000 payable in advance; and Smart Ltd was able to borrow at 10% per annum. The finance charge in the first year using the sum of the digits method would be Select one: O a. R2 500 O b. R4 125 O c. R15 000 O d. R1 500
sharad
Hello, Need help with the attached, thank you.
Q25 Chad Ltd negotiated a lease on the following terms: the term of the lease was 5 years; the estimated useful life of the leased equipment was 10 years; the purchase price was R60 000; and the annual lease payment was R5 000. This lease should be classified as_____. Select one: a. A finance lease b. neither operating nor finance lease c. An operating lease d. a financial lease
Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2024. Edison purchased the equipment from International Machines at a cost of $131,379. 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 2 years (8 quarterly periods) $ 17,000 2 at the beginning of each period years $ 131,379 Implicit interest rate (Also 4% Fair value of asset 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. 2025. Edison's fiscal year ends December 31. Complete this question by entering your answers in the tabs below. Amortization Schedule General Journal
At the beginning of current year, Arianne Company sold a Próblem 15-12 (IFRS) machine and immediately leased it back. 5,000,000 6,000,000 500,000 Sale price at fair value Carrying amount of machine Annual rental payable at the end of each year Lease term Remaining life of machine Implicit interest rate PV of an ordinary annuity of 1 at 6% for 5 perioda 5 years 20 years 6% 4.21 1. What is the cost of right of use asset? a. 2,105,000 b. 2,526,000 c. 2,895,000 d. 1,500,000 2. What is the loss on right transferred to the buyer-lessor? a. 579,000 b. 505,200 c. 500,000 d. 3. What is the lease liability at year-end? a. 2,177,560 b. 1,605,000 с. 1,731,300 d. 2,105,000 4. What is the net annual rental income of the buyer-lessor? a. 373,700 b. 200,000 с. 500,000 d. 250,000 17 I 10 Page +
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…
Please show all workings clearly.
On 1 July 2022, Moose Ltd leased a plastic-moulding machine from Wolf Ltd. On 1 July 2022 the machine was in the records of Wolf Ltd at its fair value of $75 000. The lease agreement contained the following provisions. Lease term 4 years Annual rental payment, in advance on 1 July each year $20 750 Residual value at end of the lease term $7 000 Residual guaranteed by lessee $4 000 Interest rate implicit in lease 8% The machine will be depreciated by Moose Ltd on a straight-line basis. The expected useful life of the machine is 5 years. Moose Ltd intends to return the machine to the Wolf Ltd at the end of the lease term. The lease has been classified as a finance lease by Wolf Ltd. Included in the annual rental payment is an amount of $750 to cover the costs of maintenance and insurance paid for by the lessor. Initial direct costs for setting up the lease were incurred by both parties: $1 518 for Moose Ltd and $1 687 for Wolf Ltd. Required: Prepare…

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS