A ampa products entered into a lease agreement with p ampp

Assignment Help Accounting Basics

Reference no: EM13583504

A &A products entered into a lease agreement with P &P Products, Inc. to purchase a piece of euipment on January 1, 2012. The terms of the lease are 8%, 5 year lease with a 6 year useful lefe. The machine has a fair value of 600,000. The residual value is zeron. A&A products doesn't know the intrest rate that P&P products uses. Assume that the entries have not been made on the books of A&A products.

REQUIREMENT: Prepare a five year amortization schedule. Show all necessary entries on the books of A&A products for the first year.

REQUIREMENT:Assume that the lessor's (P&P products) intrest rate is 8% and that the lease qualifies as a direct financing lease, using the infor mation above: Prepare the lessor's amortization table for the duration of the lease and make entries on the books P&p products for the first two years.

Reference no: EM13583504

Questions Cloud

Legacy company is considering the production and sale of a : legacy company is considering the production and sale of a new product with the following sales and cost data unit

Lark art company sells unfinished wooden decorations at a : lark art company sells unfinished wooden decorations at a price of 15.00. the current profit margin is 5.00 per

On january 4 2013 runyan bakery paid 350 million for 10 : on january 4 2013 runyan bakery paid 350 million for 10 million shares of lavery labeling company common stock. the

Keegan company manufactures a single product and has a : keegan company manufactures a single product and has a policy that ending inventory must equal 10 of the next months

A ampa products entered into a lease agreement with p ampp : a ampa products entered into a lease agreement with p ampp products inc. to purchase a piece of euipment on january 1

Organizations use a variety of performance measures to : organizations use a variety of performance measures to evaluate managers. central to the idea ofresponsibility

The company has an opportunity to secure a special order of : nbspnbspsales 153000nbspnbspvariable expenses48600nbspnbspcontribution margin104400nbspnbspfixed

A company is considering investing in manufacturing : a company is considering investing in manufacturing equipment expected to cost 184000. the equipment has an estimated

Hank estimates that 3 of the grape concentrate is wasted 10 : hnak itzek manufactures and sells homemade wine and he wants to develop a standard cost per gallon. the following are

User Account

All Pages