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.

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Answer 1

Question

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.

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Answer 2

Question

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

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Answer 3

Question

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

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Answer 4

Question

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

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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

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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.

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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.