User Account

All Pages

Calculate the selling price

Assignment Help Accounting Basics
Reference no: EM132891991

Problem - Lessor Accounting with Receipts at End of Year - Berne Company (lessor) enters into a lease with Fox Company to lease equipment to Fox beginning January 1, 2019. The lease terms, provisions, and related events are as follows:

1. The lease term is 4 years. The lease is noncancelable and requires annual rental payments of $50,000 to be made at the end of each year.

2. The equipment costs $130,000. The equipment has an estimated life of 4 years and an estimated residual value at the end of the lease term of zero.

3. Fox agrees to pay all executory costs directly to a third party.

4. The interest rate implicit in the lease is 12%.

5. The initial direct costs are insignificant and assumed to be zero.

6. The collectability of the rentals is reasonably assured.

Required -

1. Assuming that the lease is a sales-type lease from Berne's point of view, calculate the selling price and assume that this is also the fair value.

2. Prepare a table summarizing the lease receipts and interest income earned by Berne.

3. Prepare journal entries for Berne, the lessor, for the years 2019 and 2020.

Reference no: EM132891991

Questions Cloud

How to implement a secure wireless network : Explain how to do this and provide it in a step-by-step implementation guide using screenshots and explanations. how to implement a secure wireless network
Describe three network security risks : Describe three network security risks and how an administrator may be able to defend aganist them.
The role of culture and future research needs : This paper is focused on the organizational contexts of social robots and required cultural challenges.
How approached locating and vetting high-quality : How approached locating and vetting high-quality, unbiased sources of information when researching trends, vendors, and other easily hyped topics.
Calculate the selling price : Assuming that the lease is a sales-type lease from Berne's point of view, calculate the selling price and assume that this is also the fair value
How would create a vision for work : How you would create a vision for your work? Kirk (2019) notes the importance of formulating your brief. What does he mean by this?
Prepare journal entries for ramsey : Prepare journal entries for Ramsey (the lessor) to record the lease contract on March 1, 2019, the receipt of the first two lease rentals
Transformational leadership model : In the transformational leadership model, we learn how important it is for a leader to articulate his or her vision to others.
Describe two cryptocurrencies with applicable examples : Describe at least two cryptocurrencies with applicable examples. Discuss some similarities and differences. Lastly, discuss if you have any experience

Reviews

Write a Review

Accounting Basics Questions & Answers

  Journal entries to record depreciation expense

Prepare the journal entries to record depreciation expense for 2012 and correct any errors made to date related to the information provided.

  Jk software jks a public company with quarterly reporting

jk software jks a public company with quarterly reporting signed a contract with jr gardens on november 1 2009. the

  Find the costs of prescription drugs administered

The nursing station on the fourth floor, Find The costs of prescription drugs administered by the nursing station to patients should be classified as?

  Identify six factors that determine reliability of evidence

Identify the six factors that determine the reliability of evidence. For each situation, state which of the six factors affected the reliability of the evidence

  State the appropriate action to be carried out on statements

State the appropriate action to be carried out on the audited financial statements. The alternative actions are as follows

  What are the acceptable inventory valuation methods under

1. what are the acceptable inventory valuation methods under the u.s. generally accepted accounting principles gaap?2.

  Flux of the magnetic field b through a metalic ring is

flux of the magnetic field b through a metalic ring is changing with time. it creates 12 volt electromotive force in

  How much of the joint cost will be assigned to product b

How much of the joint cost will be assigned to Product B if joint costs are allocated on the basis of number of units produced

  Determine the total fixed cost per unit of production

Required - Determine the total fixed cost per unit of production, assuming that Rundle production 8,500, 9,000 or 9,500 units

  Determine the workforce reductions and abandonment of plant

The operations would be closed down in early 2012, and this would involve workforce reductions and abandonment of plant and equipment.

  Prepare a schedule of cash payments

Wildhorse Company at December 31 has cash $23,200, noncash assets $100,000, liabilities $53,700, Prepare a schedule of cash payments

  Discuss the general basics of the regulatory rules

Discuss the general basics of the regulatory rules applying to insider trading and its implications and address the following: Legal implications

Free Assignment Quote

Assured A++ Grade

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd