User Account

All Pages

Make the entries required in the capital projects fund

Assignment Help Accounting Basics
Reference no: EM131794276

Question - On July 1, 2008, a five-year agreement is signed between the City of Genoa and the Computer Leasing Corporation for the use of computer equipment not associated with proprietary funds activity. The cost of the lease, excluding executory costs, is $15,000 per year. The first payment is to be made by a capital projects fund at the inception of the lease. Subsequent payments, beginning July 1, 2009, are to be made by a debt service fund. The present value of the lease payments, including the first payment, is $68,189. The interest rate implicit in the lease is 5 percent.

a. Assuming the agreement meets the criteria for a capital lease under the provisions of SFAS No. 13, make the entries required in (1) the capital projects fund and (2) the debt service fund on July 1, 2008, and July 1, 2009.

b. Comment on where the fixed asset and long-term liability associated with this capital lease would be recorded and the impact of the journal entries recorded for a.

Reference no: EM131794276

Questions Cloud

How much interest on interest did the company earn : Precision engineering invested $110,000 at 6.5 percent interest, How much interest on interest did the company earn over this period of time
What is the equivalent units of production used to compute : What is the equivalent units of production used to compute unit conversion cost on the cost of production report for Department W
Find all vertices adjacent to a given vertex : Write and test a function for the adjacent-vertices algorithm in Exercise. Find all vertices adjacent to a given vertex.
Compute trumpeters e and p for the year : Compute Trumpeter's E & P for the year. What are the tax consequences of the two distributions made during the year to Donald (his stock basis is $74,000)?
Make the entries required in the capital projects fund : Assuming the agreement meets the criteria for a capital lease under the provisions of SFAS No. 13, make the entries required in (1) the capital projects fund
What were the total cost of units completed during a period : Department S had no work in process at the beginning of the period. 14,007 units of direct materials were added during the period at a cost
Computing the nancy cash flow worth : Mary is going to receive a 35-year annuity of $9,500. Nancy is going to receive a perpetuity of $9,500. Required: If the appropriate interest rate is 8 percent.
Essay about service quality : Essay about Service Quality. It should be about your start up organic food company.
Discuss what investors would be wiling to pay for the bond : What do those answers tell you about what investors would be wiling to pay for the bond on January 1, 2000

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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