Sales Cost of Sales Net Selling profit Interest income Net investment, end 1,776,558.00 2,215,063.00 1,500,000.00 65,063.00 161,505.00 Sales Cost of Sales Net Selling profit Interest income Net inestment, end 1,776,558.00 2.215,063.00 1,500,.000.00 715,063.00 161,505.00 Sales Cost of Sales Net Selling profit Interest income Net investment, end 1,776,558.00 2,092,111.00 1,500,000.00 592111.00 161,505.00 Sales Cost of Sales Net Selling profit Interest income Net investment, end 1,776,55800 2,092,111.00 1,377,058.00 592,111.00 161,505.00
Sales Cost of Sales Net Selling profit Interest income Net investment, end 1,776,558.00 2,215,063.00 1,500,000.00 65,063.00 161,505.00 Sales Cost of Sales Net Selling profit Interest income Net inestment, end 1,776,558.00 2.215,063.00 1,500,.000.00 715,063.00 161,505.00 Sales Cost of Sales Net Selling profit Interest income Net investment, end 1,776,558.00 2,092,111.00 1,500,000.00 592111.00 161,505.00 Sales Cost of Sales Net Selling profit Interest income Net investment, end 1,776,55800 2,092,111.00 1,377,058.00 592,111.00 161,505.00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Can Please Help Me: Accounting / Intermediate Accounting 2
60 minutes only the given time. Wish you could help me.
I will give UPVOTE and GOOD FEEDBACK.
Transcribed Image Text:20. Pizzicato Co. a dealer, leases a brand-new machineto Prestissimo, Inc. The machine is classified as
inventory in Pizzicato's books and has a carrying amount of P1,500,000. The usefullife of themachine is
5 years. The leaseterm is 4 years and the annual rent, due at the beginning of each year, is P600,000.
Pizzicato Co. incurred direct cost O P20,000 in negotiatingthe lease. The market rate of interest is 10%.
The machine reverts back to Pizzicato at the end of the leaseterm, at which timethe machine is
expectedto have aresidual value of P180,000. Pizzicato accounts forthe lease sale typelease.
Transcribed Image Text:Sales
Cost of Sales Net Selling profit Interest income Net investment, end
2,215,063.00 1,500,000.00
695,063.00
161,505.00
1,776,55&00
Sales
Cost of Sales Net Selling profit Interest income Net investment, end
1,776,558.00
715,063.00
2,215,063.00 1,500,000.00
161,505.00
Sales
Cost of Sales Net Selling profit Interest income Net investment, end
1,776,55800
2,092,111.00 1,500,000.00
592,111.00
161,505.00
d.
Sales
Cost of Sales Net Selling profit Interest income Net investment, end
1,776,55800
2,092,111.00 1,377,068.00
592,111.00
161,5C5.00
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