a
Concept Introduction:
Lease liabilities: A Lease is an agreement between the owner of the asset and the tenant that grants the tenant the right to use the asset for a period of time in return for cash. Accounting for a lease can be classified into an operating lease and a finance lease. An operating lease is a contract in which the owner retains the risk and rewards of ownership, whereas a financial lease is in which the lessor transfers all risks and rewards of ownership to the lessee.
The
b
Concept Introduction:
Lease liabilities: A Lease is an agreement between the owner of the asset and the tenant that grants the tenant the right to use the asset for a period of time in return for cash. Accounting for a lease can be classified into an operating lease and a finance lease. An operating lease is a contract in which the owner retains the risk and rewards of ownership, whereas a financial lease is in which the lessor transfers all risks and rewards of ownership to the lessee.
The journal entry for the first-year lease payment
c
Concept Introduction:
Lease liabilities: A Lease is an agreement between the owner of the asset and the tenant that grants the tenant the right to use the asset for a period of time in return for cash. Accounting for a lease can be classified into an operating lease and a finance lease. An operating lease is a contract in which the owner retains the risk and rewards of ownership, whereas a financial lease is in which the lessor transfers all risks and rewards of ownership to the lessee.
The journal entry to record straight-line amortization for three years
d
Concept Introduction:
Lease liabilities: A Lease is an agreement between the owner of the asset and the tenant that grants the tenant the right to use the asset for a period of time in return for cash. Accounting for a lease can be classified into an operating lease and a finance lease. An operating lease is a contract in which the owner retains the risk and rewards of ownership, whereas a financial lease is in which the lessor transfers all risks and rewards of ownership to the lessee.
The journal entry for lease payments at the end of years 1 and 2
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Chapter 10 Solutions
FINANCIAL+MANAG.ACCT.
- Hilary owns a fruit smoothie shop at the local mall. Each smoothie requires 1/3 pound of mixed berries, which are expected to cost $7 per pound during the summer months. Shop employees are paid $8 per hour. Variable overhead consists of utilities and supplies. The variable overhead rate is $0.12 per minute of DL time. Each smoothie should require 4 minutes of DL time. 1. What is the standard cost of direct materials for each smoothie? 2. What is the standard cost of direct labor for each smoothie? 3. What is the standard cost of variable overhead for each smoothie?arrow_forwardAt the beginning of the recent period, there were 1,100 units of product in a department, 40% completed. These units were finished, and an additional 6,200 units were started and completed during the period. 900 units were still in process at the end of the period, 30% completed. Using the weighted-average method, the equivalent units produced by the department were: a. 6,200 units. b. 7,100 units. c. 7,370 units. d. 6,800 units. e. 7,570 units.arrow_forwardAssuming no adjusting journal entries are madearrow_forward
- determine the cash payments made during Mayarrow_forward9. Utilities Paid - Pays $800 for electricity, water, and internet bills. 10. Loan Repayment (Partial) - Pays $2,000 toward the bank loan. 11. Supplier Payment - Pays $3,000 to suppliers for previous credit purchases. 12. Advertising Expense - Spends $1,200 on digital marketing and flyers. 13. Depreciation on Equipment - Records depreciation of $500 on the espresso machine and furniture. 14. Customer Payment Received - A corporate client pays $2,000 toward their outstanding balance. 15. Owner Withdraws Cash - Sarah withdraws $1,500 from the business for personal use.arrow_forwardGeneral accountingarrow_forward
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning