Solution-Determine the interest rate implicit in the lease

Determine the interest rate implicit in the lease agreement

Assignment Help Accounting Basics

Reference no: EM13882957

1.On March 31, 2013, Southwest Gas leased equipment from a supplier and agreed to pay $200,000 annually for 20 years beginning March 31, 2014. Generally accepted accounting principles require that a liability be recorded for this lease agreement for the present value of scheduled payments. Accordingly, at inception of the lease, Southwest recorded a $2,293,984 lease liability.

Required:
Determine the interest rate implicit in the lease agreement.

Reference no: EM13882957

Questions Cloud

Create a view called customer with balances : Create a view called customer_with_balances that has the following columns: customer_number, customer_lname and customer_balance. The view should only include those customers where the customer balance is greater than zero

Analyze the data and draw conclusions about the relationship : Analyze the data and draw conclusions about the relationship between the stock market and the performance of the economy

The income statement and the operating section : The income statement and the operating section of the cash flow statement present a company's results in very different formats. In your opinion, which statement is more important to shareholders? To company management? To creditors? Explain your res..

Describe the products and services of commercial : Describe the products and services of commercial, public and third sector organizations?State employer and employee rights and responsibilities under employment law, and the importance of having these.Detail employer and employee rights and responsib..

Determine the interest rate implicit in the lease agreement : Southwest recorded a $2,293,984 lease liability.

Montgomery company agreed to purchase a building : 1.On January 1, 2013, the Montgomery Company agreed to purchase a building by making six payments.

Clearly identify a trend in professional sports : Clearly identify a trend in professional sports, summarize what you have found, and provide your opinion. Clearly indicate why this is relevant for economic and financial management. Also include a relevant example.

The barrett company purchased merchandise from a supplier : 1.On January 1, 2013, The Barrett Company purchased merchandise from a supplier.

What approaches could abd employ to estimate the firms sales : What approaches could ABD employ to estimate the firm's sales potential for markets in Europe and other affluent economies?

User Account

All Pages

Determine the interest rate implicit in the lease agreement

Reference no: EM13882957

Reference no: EM13882957

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT