Lessor entries with bargain purchase option

Reference no: EM13763253

(Lessor Entries with Bargain Purchase Option) A lease agreement between Earth Leasing Corporation and New Moon Company.

Instructions:

Do the following for the lessor.

(a) Compute the amount of the lease receivable at the inception of the lease.

(b) Prepare a lease amortization schedule for Earth Leasing Corporation for the 6-year lease term.

(c) Prepare the journal entries to reflect the signing of the lease agreement and to record the receipts and income related to this lease for the years 2014, 2015, and 2016. The lessor's accounting period ends on December 31. Earth Leasing does not use reversing entries.

Reference no: EM13763253

Questions Cloud

Lessee-lessor entries-sales-type lease : On January 1, 2014, Global Corporation leased equipment to Local Inc. The following information pertains to this lease.

Concepts of class and individual characteristics : Your analysis must reference specific tests, histological staining, microscopes, and other equipment or techniques that should be used.

Review of classes-objects-arrays and enhance for looping : Write Java code for class Produce that meets the listed requirements

Both fiscal and monetary policy affect the money supply : The Tax Foundation says this is because of economic growth leading to higher incomes and higher taxes.

Lessor entries with bargain purchase option : A lease agreement between Earth Leasing Corporation and New Moon Company.

Identify a social cause that is important to you : you will identify a social cause that is important to you. You will describe this cause (what you want changed in the world or society) and some specific ways people could help or take action.

Computation of rental-journal entries for lessor : Horizon Leasing Inc. signs an agreement on January 1, 2014, to lease equipment to one of its customers. The following information relates to this agreement.

Based on an internal rate of return analysis : RealTurf is considering purchasing an automatic sprinkler system for its sod farm by borrowing the entire $20,000 purchase price. The loan would be repaid with four equal annual payments at an interest rate of 12%/year. Show the internal rate of ret..

The risk-free rate and expected return on the market : The risk-free rate is 4.2 percent and the expected return on the market is 12.3 percent. Stock A has a beta of 1.2 and an expected return of 13.1 percent. Stock B has a beta of 0.75 and an expected return of 11.4 percent. Are these stocks correctly p..

User Account

All Pages