CONNECT ONLINE ACCESS FOR FUNDAMENTAL AC
25th Edition
ISBN: 9781266064173
Author: Wild
Publisher: MCG
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Chapter 14, Problem 24QS
To determine
Concept Introduction: Lease liability is an agreement between the lessor owner of the asset and the lessee the tenant that grants the right to use the asset for a predetermined period for rent. For the purpose of the account, a lease is either regarded as an operating lease or a capital lease. An operating lease retains the risk and reward of ownership while under a capital lease, the lessor transfer right and ownership to the lessee.
The
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Applying New Lease Accounting Standards for Operating Leases
On January 1 of the current year, CCH Corporation entered into the following lease contract. Based on the facts, CCH Corporation classifies the lease as an operating lease.
Details of lease contract
Leased asset
Office space
Lease term
5
years
Annual lease payment
$115,487
Upfront fees
$10,000
Cost of debt capital
5%
a. Determine the amount of the lease liability that CCH will add to its balance sheet at the inception of the lease.
Amount of lease liability
b.
What amount will be added to the balance sheet as an asset?
Amount added as an asset
The rest of the questions are given in pictures below. please answer all parts correctly. i will upvote. thank you!!
Accounting for Leases Using Finance and Operating Lease Methods Core Co. leased a piece of manufacturing equipment from E - So Co. with the following terms:
Annual lease payment: $660,000 Term of lease: 5 years Interest rate: 4% Lease commences on January 1, 2023 Payments are made on December 31 of each year in
the lease term For parts a and b: a. Prepare journal entries to show the effects for Core Co. for January 1, 2023-December 31, 2024, if the lease is classified as a
finance lease. b. Prepare journal entries to show the effects for Core Co. for January 1, 2023-December 31, 2024, if the lease is classified as an operating lease.
Accounting for Leases Using Finance and Operating Lease Methods
Core Co. leased a piece of manufacturing equipment from E-So Co. with the following terms:
Annual lease payment: $770,000
Term of lease: 5 years
Interest rate: 4%
Lease commences on January 1, 2023
Payments are made on December 31 of each year in the lease term
For parts a and b:
a. Prepare journal entries to show the effects for Core Co. for January 1, 2023-December 31, 2024, if the lease is classified as a finance lease.
b. Prepare journal entries to show the effects for Core Co. for January 1, 2023-December 31, 2024, if the lease is classified as an operating lease.
Operating Lease
Finance Lease
b. Operating lease:
Date
Jan. 1, 2023
Account
To record the start of the operating lease.
Dec. 31, 2023
To record the lease payment.
Dec. 31, 2023
To record the lease expense.
Dec. 31, 2024
To record the lease payment.
Dec. 31, 2024
To record the lease expense.
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Debit
Credit
Chapter 14 Solutions
CONNECT ONLINE ACCESS FOR FUNDAMENTAL AC
Ch. 14 - Prob. 1QSCh. 14 - QS 14-2 Issuing bonds at par P1
Dunphy Company...Ch. 14 - QS 14-3 Issuing bonds at par P1
Madrid Company...Ch. 14 - QS 14-4 Recording bond issuance and interest P1 P2...Ch. 14 - QS 14-5 Journalizing discount bond issuance...Ch. 14 - Prob. 6QSCh. 14 - OS 14-6
Straight line: Bond computations...Ch. 14 -
QS 14-8 Recording bond issuance and discount...Ch. 14 - QS 14-9 Straight-Line: Premium bond computations...Ch. 14 - On July 1. Aloha Co. s a call option that...
Ch. 14 - Prob. 11QSCh. 14 - Prob. 12QSCh. 14 - Prob. 13QSCh. 14 - Prob. 14QSCh. 14 - Prob. 15QSCh. 14 - Prob. 16QSCh. 14 - Prob. 17QSCh. 14 - Prob. 18QSCh. 14 - QS 14–17C
Recording operating leases
C3
Jin Li,...Ch. 14 - Prob. 20QSCh. 14 - Prob. 21QSCh. 14 - Prob. 22QSCh. 14 - Prob. 23QSCh. 14 - Prob. 24QSCh. 14 - Prob. 1ECh. 14 - Exercise 14-2 Recording bond issuance at par....Ch. 14 - Exercise 14-3 Recording bond issuance and...Ch. 14 - Prob. 4ECh. 14 - Prob. 5ECh. 14 - Prob. 6ECh. 14 - Prob. 7ECh. 14 - Prob. 8ECh. 14 - Prob. 9ECh. 14 - Exercise 14-10 Bond retirement by call option...Ch. 14 - Exercise 14-11 Straight-Line: Bond computations,...Ch. 14 - Installment note amortization table C1 On January...Ch. 14 - Prob. 13ECh. 14 - Prob. 14ECh. 14 - Prob. 15ECh. 14 - Prob. 16ECh. 14 - Prob. 17ECh. 14 - Prob. 18ECh. 14 - Exercise 14-19u Effective Interest: Amortization...Ch. 14 - Prob. 20ECh. 14 - Prob. 21ECh. 14 - Prob. 22ECh. 14 - Prob. 23ECh. 14 - Prob. 1PSACh. 14 - Prob. 2PSACh. 14 - Prob. 3PSACh. 14 - Prob. 4PSACh. 14 - Prob. 5PSACh. 14 - Prob. 6PSACh. 14 - Prob. 7PSACh. 14 - Prob. 8PSACh. 14 - Prob. 9PSACh. 14 - Problem 14-10AB Effective Interest: Amortization...Ch. 14 - Prob. 11PSACh. 14 - Prob. 12PSACh. 14 - Prob. 13PSACh. 14 - Problem 14-1B Straight-Line: Amortization of bond...Ch. 14 - Prob. 2PSBCh. 14 - Prob. 3PSBCh. 14 - Prob. 4PSBCh. 14 - Prob. 5PSBCh. 14 - Prob. 6PSBCh. 14 - Prob. 7PSBCh. 14 - Prob. 8PSBCh. 14 - Prob. 9PSBCh. 14 - Prob. 10PSBCh. 14 - Prob. 11PSBCh. 14 - Prob. 12PSBCh. 14 - Prob. 13PSBCh. 14 - Prob. 14SPCh. 14 - Prob. 1AACh. 14 - Prob. 2AACh. 14 - Prob. 3AACh. 14 - Prob. 1DQCh. 14 - Prob. 2DQCh. 14 - Prob. 3DQCh. 14 - Prob. 4DQCh. 14 - Prob. 5DQCh. 14 - Prob. 6DQCh. 14 - Prob. 7DQCh. 14 - Explain the concept of accrued interest on bonds...Ch. 14 - Prob. 9DQCh. 14 - Prob. 10DQCh. 14 - Prob. 11DQCh. 14 - Prob. 12DQCh. 14 - Prob. 13DQCh. 14 - Prob. 14DQCh. 14 - Prob. 15DQCh. 14 - Prob. 1BTNCh. 14 - Prob. 2BTNCh. 14 - Prob. 3BTNCh. 14 - Prob. 4BTN
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