Reference no: EM132929993

Questions -

Q1. On April 1, 2020 EDSA Company issued at 99 plus accrued interest 4,000 8% bonds with face amount of 1,000 per bond. The bonds are dated January 1, 2020 mature on January 1, 2030 and pay interest on January 1 and July 1. The company paid bond issue cost of 140,000. How much cash was received from the bond issuance?

Q2. On January 1, 2021 EDSA company entered into an 8 year lease of a floor of building with useful life of 15 years with the following terms: 1) Annual rental for the first three years payable at the end of each year - 300,000 b) Annual rental for the next five years payable at the end of each year - 400,000 c) Implicit interest rate 10% d) incremental borrowing rate 12% e) PV of an ordinary annuity of 1 at 10% for three periods 2.49 , PV of an ordinary annuity of 1 at 10% for five periods 3.79 , PV of 1 at 10% for three periods .75 f) PV of an ordinary annuity of 1 at 12% for three periods 5.92 , PV of an ordinary annuity of 1 at 12% for five periods 4.725 , PV of 1 at 12% for three periods .711. The lease provides for neither a transfer of title to the lessee nor a purchase option. What is the lease liability on January 1, 2020?

Q3. EDSA company , lessor , leased a machinery to UMAK company under a four - year operating lease. The yearly rental for 2020,2021,2022 and 2023 is 100,000 , 150,000, 200,000 and 250,000, respectively. Rentals are payable at the end of each month, All rental payments within the year were made when due. On December 31, 2020, what amou7nt should be reported as rent receivable?