User Account

All Pages

How much sales is to be recorded on the inception date

Assignment Help Financial Accounting
Reference no: EM132672133

Sunlife Company used leases as a means of marketing products. On January 1, 2019, Sunlife Company leased an equipment to Sundown Company for P500,000 per year for 10 years, payable on December 31 of each year. The cost of the equipment is P2,000,000 and the fair value is P3,072,500 on January 1, 2019 using an implicit rate of 10%. The fair value of the equipment approximates the present value of rentals. At the expiration of the lease, title to the equipment passes to Sundown Company. Sunlife employs the perpetual sysytem.

Problem 1: What amount of Unearned interest income is to be recorded on the inception of the lease on January 1, 2019?

Problem 2: How much sales is to be recorded on the inception date?

Problem 3: How much is the cost of goods sold to be recorded on the corresponding sales-type lease?

Problem 4: What is the credit, upon the collection of the first payment on December 31 and by how much?How much is the interest income earned be December 31?

Reference no: EM132672133

Questions Cloud

What is Wally Section recapture in year : Problem - Wally, Inc., sold the following three personal property assets in year 6: What is Wally's Section 1245 recapture in year 6
Find what amount of unearned interest income is to be record : Sunlife Company used leases as a means of marketing products. What amount of Unearned interest income is to be recorded on the inception of the lease on January
What amount of unearned interest income is to be record : Sunlife employs the perpetual sysytem. What amount of Unearned interest income is to be recorded on the inception of the lease on January 1, 2019?
Define the current state of the problem : Define the current state of the problem/relevant work and Describe the background of your research and explain why this research is important
How much sales is to be recorded on the inception date : How much sales is to be recorded on the inception date? How much is the cost of goods sold to be recorded on the corresponding sales-type lease?
Describe challenges policing arab communities present : Describe the challenges policing Arab communities present. Examine the role you and your agency play in Homeland Security.
How would journalize the transaction for grace : How would journalize the transaction for Grace? On June 1, 2018, Grace established a proprietorship known as Mixing & Music.
Why does effective goal-setting help us achieve goals : Why does effective goal-setting help us achieve goals? What are the characteristics of good goals?
What is the nature of the gains or losses : Bob also has a $200 long-term capital loss from the sale of corporate stock. What is the nature of the gains or losses

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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