Why is there no entry in the books of the lessee on Dec. 31, 20x1 given this problem? Please explain. Books of LessorBooks of Lessee12/31/x1Cash-Collecting Officer 145KRent/Lease Income12/31/x1Rent/Lease Expense120K| Prepaid Rent25K120K25KCash-Modified DisbursementSystem (MDS), Regular12/31/x1No entryOther Unearned Revenue145K12/31/x1Depreciation-Machinery andEquipmentAccumulated Depreciation-Machinery and Equipment13окъ130K 07) SAMPLE PROBLEM #2On January 1, 20x1, Lessor acquires a machine for P1M andimmediately leases it out to Lessee under a 3-year non-cancellablelease. Lessor incurs initial direct costs of in negotiating the lease.The estimated useful life of the machine is 10 years with noresidual value. The lease is an operating lease to both Lessor andLessee. The lease payments, payable at each year-end, are asfollows:YearRentals20x1145,00020x2115,00020x3100,000

Given the lease is an operating lease - Features of operating lease - - In the operating lease…

Answered: Why is there no entry in the books of…

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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3
Define the followings? 1.) Rubber cheque. 2.) Blank endorsement. 3.) Transposition error.
Pronghorn Group has negotiated the purchase of a new piece of automatic equipment at a price of HK$6,160 plus trade-in, fo.b. factory. Pronghorn paid HK$6,160 cash and traded in used equipment. The used equipment had originally cost HK$54,560; it had a book value of HK$36,960 and a secondhand fair value of HK$40,320, as indicated by recent transactions involving similar equipment. Freight and installation charges for the new equipment required a cash payment of HK$960. (a) Your answer is correct. ress Prepare the general journal entry to record this transaction, assuming that the exchange has commercial substance. (Credit account titles are automatically Indented when amount is entered. Do not indent manually. Include in your journal entry separate account entries for both the new and old equipment. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) Account Titles and Explanation Equipment Accumulated Depreciation Equipment Equipment Cashi…
On January 1, 2022, Sandhill Co. had a balance of $411,000 of goodwill on its balance sheet that resulted from the purchase of a small business in a prior year. The goodwill had an indefinite life. During 2022, the company had the following additional transactions. Jan. 2 Purchased a patent (7-year life) $307,650. July 1 Sept. 1 Acquired a 9-year franchise; expiration date July 1, 2,031, $576,000. Research and development costs $178,500.
Sweet Company provides the following information about its defined benefit pension plan for the year 2020. Service cost $91,000 Contribution to the plan 106,400 Prior service cost amortization 10,800 Actual and expected return on plan assets 65,200 Benefits paid 40,500 Plan assets at January 1, 2020 633,900 Projected benefit obligation at January 1, 2020 701,600 Accumulated OCI (PSC) at January 1, 2020 149,900 Interest/discount (settlement) rate 9 %
These accounts are closed to the government equity account at the end of the period. Group of answer choices Intermediate accoutns balance sheet accounts guarantee deposit Allowance for doubtful accts None of the choices
Dog
Express Co. purchased equipment on March 1, 2019, for $95.000 on account. The equipment had an estimated useful life of five years with a residual value of $5.000. The equipment is disposed of on February 1. 2022. Express Co. uses the diminishing balance method of depreciation with a 20% rate and calculates depreciation for partial periods to the nearest month The company has an August 31 year end Your answer is correct. Record the acquisition of the equipment on March 1, 2019. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amountsJ Debit Credit Date Account Titles and Explanation 95000 Mar 1 faiement 500 Accounts Favable Torrserd purchase of equipment on account)
The Garware Company uses allowance method to recognize uncollectible accounts expense. It provides you the following selected information Accounts receivable on December 31 2020 RO 280000 Required balance in Allowance for Doubtful Accounts account on December 31 2020 RO 4000 Existing balance in Allowance for Doubtful Accounts account on December 31 2019 RO 3500 The journal entry to recognize uncollectible accounts expense on December 31 2017 is a. Dr Uncollectible Accounts Expense 4000 and Cr Allowance for Doubtful Accounts 4000 b. Dr Uncollectible Accounts Expense 500 and Cr Allowance for Doubtful Accounts 500 c. Dr Accounts Receivable 3500 Cr Allowance for Uncollectible Accounts Expense 3500 d. Dr Accounts Receivable 3500 Cr Uncollectible Accounts Expense 3500
differentiate temporary account from permanent account and give example of it.Based on your understanding why it is important to close all temporary accounts at the end of the piscal year?
What are the permanent accounts? Are permanent accounts closed in the closing process?
3)

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