The effect on the financial statement of operating lease and capital lease on the balance sheet and income statement and explain the financial statement effect of capitalizing operating expenses.

Question

Want to see the full answer?

Answer 1

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 18, Problem 1FSAC

a.

To determine

The effect on the financial statement of operating lease and capital lease on the balance sheet and income statement and explain the financial statement effect of capitalizing operating expenses.

b.

To determine

To prepare: The journal entries to reflect the scheduled payment during fiscal 2015 for operating and capital in place of fiscal 2014.

c.

To determine

The average interest rate on capital lease.

Given information:

Interest expense is $277.

Present value of future minimum lease payments is $3,094.

d.

To determine

To Prepare: The journal entry to record the capitalization of leases.

d.

To determine

The amount of interest expense and depreciation.

f.

To determine

The changes in assets, liabilities, and equity if all the operating leases has capitalized and also find the debt to equity ratio and total liabilities to total assets ratio and explain if operating leases capitalize the debt to equity ratio and total liability to total asset ratio.

g.

To determine

The change in the fiscal net income 2014.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Hello tutor please provide this question solution general accounting

What is the account receivable turnover rate?

Assets Liabilities Earth 302,376.77 ΚΕΦΑΛΑΙΟ / CAPITAL 565,500.00 Machinery 0.03 Fair value differences 175.17 Fixtures 47,092.83 Reserves of laws 343.41 Real estate investments 3,752,595.13 Results in new -2,290,557.96 Intangible 638.27 Total Equity -1,724,539.38 Loans granted 66,185.63 Other receivables 537,172.25 Bond Loans 6,358,664.28 Cash and cash equivalents 11,375.75 Other liabilities 83.311.76 Total Liabilities 6,441,976.04 TOTAL ASSETS 4,717,436.66 Total Liabilities and Equity 4,717,436.66 The company wants to sell 145,000 shares to a new shareholder. What will be the value of the share according to the above balance sheet?

Answer 2

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 18, Problem 1FSAC

a.

To determine

The effect on the financial statement of operating lease and capital lease on the balance sheet and income statement and explain the financial statement effect of capitalizing operating expenses.

b.

To determine

To prepare: The journal entries to reflect the scheduled payment during fiscal 2015 for operating and capital in place of fiscal 2014.

c.

To determine

The average interest rate on capital lease.

Given information:

Interest expense is $277.

Present value of future minimum lease payments is $3,094.

d.

To determine

To Prepare: The journal entry to record the capitalization of leases.

d.

To determine

The amount of interest expense and depreciation.

f.

To determine

The changes in assets, liabilities, and equity if all the operating leases has capitalized and also find the debt to equity ratio and total liabilities to total assets ratio and explain if operating leases capitalize the debt to equity ratio and total liability to total asset ratio.

g.

To determine

The change in the fiscal net income 2014.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 18, Problem 1FSAC

a.

To determine

The effect on the financial statement of operating lease and capital lease on the balance sheet and income statement and explain the financial statement effect of capitalizing operating expenses.

b.

To determine

To prepare: The journal entries to reflect the scheduled payment during fiscal 2015 for operating and capital in place of fiscal 2014.

c.

To determine

The average interest rate on capital lease.

Given information:

Interest expense is $277.

Present value of future minimum lease payments is $3,094.

d.

To determine

To Prepare: The journal entry to record the capitalization of leases.

d.

To determine

The amount of interest expense and depreciation.

f.

To determine

The changes in assets, liabilities, and equity if all the operating leases has capitalized and also find the debt to equity ratio and total liabilities to total assets ratio and explain if operating leases capitalize the debt to equity ratio and total liability to total asset ratio.

g.

To determine

The change in the fiscal net income 2014.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 18, Problem 1FSAC

a.

To determine

The effect on the financial statement of operating lease and capital lease on the balance sheet and income statement and explain the financial statement effect of capitalizing operating expenses.

b.

To determine

To prepare: The journal entries to reflect the scheduled payment during fiscal 2015 for operating and capital in place of fiscal 2014.

c.

To determine

The average interest rate on capital lease.

Given information:

Interest expense is $277.

Present value of future minimum lease payments is $3,094.

d.

To determine

To Prepare: The journal entry to record the capitalization of leases.

d.

To determine

The amount of interest expense and depreciation.

f.

To determine

The changes in assets, liabilities, and equity if all the operating leases has capitalized and also find the debt to equity ratio and total liabilities to total assets ratio and explain if operating leases capitalize the debt to equity ratio and total liability to total asset ratio.

g.

To determine

The change in the fiscal net income 2014.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 18, Problem 1FSAC

a.

To determine

The effect on the financial statement of operating lease and capital lease on the balance sheet and income statement and explain the financial statement effect of capitalizing operating expenses.

b.

To determine

To prepare: The journal entries to reflect the scheduled payment during fiscal 2015 for operating and capital in place of fiscal 2014.

c.

To determine

The average interest rate on capital lease.

Given information:

Interest expense is $277.

Present value of future minimum lease payments is $3,094.

d.

To determine

To Prepare: The journal entry to record the capitalization of leases.

d.

To determine

The amount of interest expense and depreciation.

f.

To determine

The changes in assets, liabilities, and equity if all the operating leases has capitalized and also find the debt to equity ratio and total liabilities to total assets ratio and explain if operating leases capitalize the debt to equity ratio and total liability to total asset ratio.

g.

To determine

The change in the fiscal net income 2014.

Answer 6

Chapter 18, Problem 1FSAC

a.

To determine

The effect on the financial statement of operating lease and capital lease on the balance sheet and income statement and explain the financial statement effect of capitalizing operating expenses.

Answer 7

Chapter 18, Problem 1FSAC

a.

To determine

The effect on the financial statement of operating lease and capital lease on the balance sheet and income statement and explain the financial statement effect of capitalizing operating expenses.

Answer 8

b.

To determine

To prepare: The journal entries to reflect the scheduled payment during fiscal 2015 for operating and capital in place of fiscal 2014.

Answer 9

b.

To determine

To prepare: The journal entries to reflect the scheduled payment during fiscal 2015 for operating and capital in place of fiscal 2014.

Answer 10

c.

To determine

The average interest rate on capital lease.

Given information:

Interest expense is $277.

Present value of future minimum lease payments is $3,094.

Answer 11

c.

To determine

The average interest rate on capital lease.

Given information:

Interest expense is $277.

Present value of future minimum lease payments is $3,094.

Answer 12

d.

To determine

To Prepare: The journal entry to record the capitalization of leases.

Answer 13

d.

To determine

To Prepare: The journal entry to record the capitalization of leases.

Answer 14

d.

To determine

The amount of interest expense and depreciation.

Answer 15

d.

To determine

The amount of interest expense and depreciation.

Answer 16

f.

To determine

The changes in assets, liabilities, and equity if all the operating leases has capitalized and also find the debt to equity ratio and total liabilities to total assets ratio and explain if operating leases capitalize the debt to equity ratio and total liability to total asset ratio.

Answer 17

f.

To determine

The changes in assets, liabilities, and equity if all the operating leases has capitalized and also find the debt to equity ratio and total liabilities to total assets ratio and explain if operating leases capitalize the debt to equity ratio and total liability to total asset ratio.

Answer 18

g.

To determine

The change in the fiscal net income 2014.

Answer 19

g.

To determine

The change in the fiscal net income 2014.

Answer 20

Expert Solution & Answer

Answer 21

Expert Solution & Answer

Answer 22

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 23

Ch. 18 - Does the lessee become the owner of the equipment...Ch. 18 - Prob. 18.2Q Ch. 18 - Prob. 18.3Q Ch. 18 - Prob. 18.4Q Ch. 18 - Prob. 18.5Q Ch. 18 - Prob. 18.6Q Ch. 18 - Prob. 18.7Q Ch. 18 - Prob. 18.8Q Ch. 18 - Prob. 18.9Q Ch. 18 - Prob. 18.10Q

The effect on the financial statement of operating lease and capital lease on the balance sheet and income statement and explain the financial statement effect of capitalizing operating expenses.

The effect on the financial statement of operating lease and capital lease on the balance sheet and income statement and explain the financial statement effect of capitalizing operating expenses.

To prepare: The journal entries to reflect the scheduled payment during fiscal 2015 for operating and capital in place of fiscal 2014.

The average interest rate on capital lease. Given information: Interest expense is $277. Present value of future minimum lease payments is $3,094.

To Prepare: The journal entry to record the capitalization of leases.

The amount of interest expense and depreciation.

The changes in assets, liabilities, and equity if all the operating leases has capitalized and also find the debt to equity ratio and total liabilities to total assets ratio and explain if operating leases capitalize the debt to equity ratio and total liability to total asset ratio.

The change in the fiscal net income 2014.

Want to see the full answer?

Chapter 18 Solutions

The average interest rate on capital lease.

Given information:

Interest expense is $277.

Present value of future minimum lease payments is $3,094.