Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
On January 1, 2020, PQR Ltd entered into a two year lease for a truck. The contract contains an option to extend the lease term for a further one year. PQR Ltd believes that it is reasonably certain to exercise this option. The trucks have a useful economic life of ten years.
Lease payments are $10,000 per year for the initial term and $15,000 per year for the option period. All payments are due at the end of each year. To obtain the lease, PQR Ltd incurs initial direct costs of $5,000. PQR Ltd's incremental rate of borrowing is 7%.
Required
Problem 1: Calculate the initial carrying amount of the lease liability and the right of use asset and provide the double entries needed to record these amounts in PQR Ltd's financial records.
Problem 2: State the main criteria to determine leasing arrangement as finance lease
Alan made deposits of 400$ semiannually to his bank account, which pay 10% interest compound semiannually. After 4 years, Alan made no more deposits. What will be the balance to the account 3 years after the last deposit
An inspection of the office supplies cabinet shows that only $350 of office supplies remains. Prepare the January 31 adjusting entry for office supplies.
Falling Short of Expectations - Describe the financial strategies and financial performance of General Electric from 1990 to 2000
How much larger will the value of an RRSP be at the end of 20 years if the contributor makes month-end contributions of $500
Bruce Company owns a plot of land on which buried toxic wastes have been discovered. Since it will require several years and a considerable sum of money before the property is fully detoxified and capable of generating revenues,
Show entries to record the selected transactions described Issued $3,250,000 of 10-year, 8% bonds at 97.
Wayen, Inc. sells to wholesalers on terms of 2/15, net 30. In its Dec. 31, 20x1 balance sheet, what amount should Wayen report for allowance for discounts?
Does the company's balance sheet balance according to the fundamental accounting equation? Support your answer by using the dollar amounts
Corporate Social Responsibility is not a luxury anymore, it is a requirement of all firms no matter how big or small.
Using the high-low method, compute the variable rate for tanning. Compute the fixed cost per month. Using your answers to Requirement 2, write the cost formula for tanning services.
Under the trust fund doctrine, what amount that should remain untouched or unimpairmed for the protection of corporate creditors
Compute the Cost of Goods Sold for 2018 using the following information: Direct Materials, Jan. 1, 2018 $43,000
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd