Walmart Incorporated is the world's largest retailer. A large portion of the premises that the company occupies are leased. Its financial statements revealed the following information: (Amounts in millions) Assets Operating lease right-of-use assets, net Finance lease right-of-use assets, net Liabilities Current liabilities: Operating lease obligations due within one year Finance lease obligations due within one year Long-term debt: Long-term operating lease obligations Long-term finance lease obligations July 31, 2020 July 31, 2019 $ 16,869 4,843 $ 17,239 3,949 1,734 549 1,795 439 15,669 4,673 16,079 3,915 Required: 1. The net asset "Finance lease right-of-use assets, net" has a July 31, 2020 balance of $4,843 million. Liabilities for these leases total $5,222 ($549 +$4,673). Why do the asset and liability amounts differ? 2. Prepare a journal entry that summarizes Walmart's finance lease payments for the twelve months ended July 31, 2020. Walmart's income statement reports finance lease interest of $331 million. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a journal entry that summarizes Walmart's finance lease payments for the twelve months ended July 31, 2020. Walmart's income statement reports finance lease interest of $331 million. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (ie 10.00 000 should he entered as 10)
Walmart Incorporated is the world's largest retailer. A large portion of the premises that the company occupies are leased. Its financial statements revealed the following information: (Amounts in millions) Assets Operating lease right-of-use assets, net Finance lease right-of-use assets, net Liabilities Current liabilities: Operating lease obligations due within one year Finance lease obligations due within one year Long-term debt: Long-term operating lease obligations Long-term finance lease obligations July 31, 2020 July 31, 2019 $ 16,869 4,843 $ 17,239 3,949 1,734 549 1,795 439 15,669 4,673 16,079 3,915 Required: 1. The net asset "Finance lease right-of-use assets, net" has a July 31, 2020 balance of $4,843 million. Liabilities for these leases total $5,222 ($549 +$4,673). Why do the asset and liability amounts differ? 2. Prepare a journal entry that summarizes Walmart's finance lease payments for the twelve months ended July 31, 2020. Walmart's income statement reports finance lease interest of $331 million. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a journal entry that summarizes Walmart's finance lease payments for the twelve months ended July 31, 2020. Walmart's income statement reports finance lease interest of $331 million. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (ie 10.00 000 should he entered as 10)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Walmart Incorporated is the world's largest retailer. A large portion of the premises that the company occupies are leased. Its financial
statements revealed the following information:
(Amounts in millions)
Assets
Operating lease right-of-use assets, net
Finance lease right-of-use assets, net
Liabilities
Current liabilities:
Operating lease obligations due within one year
Finance lease obligations due within one year
Long-term debt:
Long-term operating lease obligations
Long-term finance lease obligations
July 31, 2020 July 31, 2019
$ 16,869
4,843
$ 17,239
3,949
1,734
549
1,795
439
15,669
4,673
16,079
3,915
Required:
1. The net asset "Finance lease right-of-use assets, net" has a July 31, 2020 balance of $4,843 million. Liabilities for these leases
total $5,222 ($549 +$4,673). Why do the asset and liability amounts differ?
2. Prepare a journal entry that summarizes Walmart's finance lease payments for the twelve months ended July 31, 2020. Walmart's
income statement reports finance lease interest of $331 million.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Prepare a journal entry that summarizes Walmart's finance lease payments for the twelve months ended July 31, 2020. Walmart's
income statement reports finance lease interest of $331 million.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in
millions (ie 10.00 000 should he entered as 10)
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