
a.
The effect on the financial statement of operating lease and capital lease on the
b.
To prepare: The journal entries to reflect the scheduled payment during fiscal 2015 for operating and capital in place of fiscal 2014.
c.
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 Prepare: The
d.
The amount of interest expense and
f.
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.
The change in the fiscal net income 2014.

Want to see the full answer?
Check out a sample textbook solution
Chapter 18 Solutions
Intermediate Accounting
- Accounting?arrow_forwardCalculate the depreciation for Year 1 using the units-of-production (activity-based) depreciation method. 40 service trucks were purchased at a cost of $38,000 each. Each truck is estimated to be driven a total of 80,000 miles and then be sold for an estimated $8,000. In Year 1, the trucks were driven 1,120,000 miles.arrow_forwardXavi Industries has two production departments with distributed production overhead of $15,000 for Dept. A and $9,000 for Dept. B. Dept. A uses a total of 6,000 labor hours, while Dept. B uses 3,000 labor hours. Assuming labor hours as the allocation base, what is the overhead rate for Dept. A? a. $2.50 b. $1.80 c. $3.00 d. $2.00 e. $2.75 answerarrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education





