User Account

All Pages

Make all the necessary journal entries for trevor ltd

Assignment Help Financial Accounting
Reference no: EM132957047

On 1 July 2020, Trevor Ltd leased equipment from Hannah Ltd. The following are details of the equipment and the lease contract:

  • The equipment has a fair value of $43,000
  • Lease term is 5 years, useful life of the equipment is 6 years, and Trevor Ltd will return the equipment at the end of the lease term
  • Lease payments are in advance and will be paid on 1 July of each year, starting 1 July 2020, with $12,000 as the annual payment
  • Residual value of the equipment at the end of the lease term is $4,000, with Trevor Ltd guaranteeing 75% of the residual value
  • The interest rate implicit in the lease arrangement is 6%
  • In setting up the lease arrangement Trevor Ltd incurred $1,177, while Hannah Ltd incurred $1,570.

Required:

Problem 1: Make all the necessary journal entries for Trevor Ltd (lessee) for the date 30 June 2021 only. Show all working out.

Reference no: EM132957047

Questions Cloud

Prepare the journal entries in the books of the franchisor : The gross sales of Ms. Ching for the month of December 2020 is 280,000. Prepare the journal entries in the books of the franchisor
What is the equity ratio as of December : Question - The company C. Aker AS will close the accounts for 20x1. What is the equity ratio (equity ratio) as of 31 December 20x1
What is the default risk premium on haque bonds : What is the default risk premium (DRP) on Haque's bonds? Haque Corporation's 5-year bonds yield 6.70% and 5-year T-bonds yield 5.70%.
What is the value of X : In order for the present value of this perpetuity to be equal to $783.25 at an interest rate of i^(3) = 6.6%, what is the value of X
Make all the necessary journal entries for trevor ltd : Make all the necessary journal entries for Trevor Ltd (lessee) for the date 30 June 2021 only. On 1 July 2020, Trevor Ltd leased equipment from Hannah Ltd.
Prepare journal entry for transactions under cost method : Paid-in capital in excess of par 83,700. Prepare the journal entry for these transactions under the cost method of accounting for treasury stock.
What is the allocation rate : Suppose that the "Maintenance" overhead costs are to be allocated based on square footage. What is the allocation rate? Interpret your result
Determine suitable pid controller settings : Determine suitable PID controller settings for the process using the 'open-loop response' method and Compare the two methods of tuning
Prepare the journal entries necessary to revalue equipment : Prepare the journal entries necessary to revalue the equipment on 30 June 2020. The equipment is measured using the revaluation model.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Peroni company paid wages

Peroni Company paid wages of $170,900 this year. Of this amount, $114,000 was taxable for net FUTA and SUTA purposes. The state's contribution tax rate is 3.1% for Peroni Company. Due to cash flow problems, the company did not make any SUTA payments ..

  How do the financial reporting rules handle the reporting

How do the financial reporting rules handle the reporting of Accounts Receivable and how does this allow for potential earnings manipulation?

  Make balance sheet for the subsidiary in krones

Make income statement, statement of retained earnings, and balance sheet for this subsidiary in krones and then translate these amounts into U.S. dollars.

  Explain how affect the risk of a material misstatement

Explain how affect the risk of a material misstatement. The entity has just opened a major retail outlet in the united states. Provisions are material liability

  Required to prepare the clubs

Bar Trading Account for the year ended and income and Expenditure Account for the year ended 31 December 2008 and a Balance Sheet as at that date - Required to prepare the Club's - Bar Trading Account for the year ended 31 December 2008.

  What is the companys cik number

What is the companys CIK number - What is the companys Ticker Symbol and fiscal yearend?

  Prepare journal entries for the declaration of the dividend

Prepare Journal Entries for The declaration of the dividend and The payment of the dividend. Monday Inc. has 150,000 common shares outstanding on January 1

  Prepare stockholder equity section of company

Prepare the stockholders’ equity section of the company’s balance sheet at the end of the current year. Assume Resisto Systems’s common stock is trading at $ 24 per share and its preferred stock is trading at $ 107 per share at the end of the curre..

  Describe the characteristics of hybrids of debt

Describe the characteristics of hybrids of debt and equity funds like preference shares and convertible notes.Describe the characteristics of debt funds

  Calculate selected ratios and obtain industry averages

ACC 201- Calculate selected ratios and obtain industry averages for comparison. Prepare in good form a written presentation of the results of the financial statement analysis.

  How to estimate the rupiah riskless rate

How to Estimate the rupiah riskless rate. S&P has a rating of BB on these bonds, and the typical spread for a BB-rated country is 5% over a riskless rate.

  What is the price of a three-year

You have the following incomplete information on yields, What is the price of a 3-year, 5%, annual-pay, coupon bond with face amount $1,000?

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