Necessary journal entries to record the transactions

Assignment Help Accounting Basics

Reference no: EM13137115

On January 2, 2011, the Wilcox Studios leased six computers for use in the engineering department. The lease period is for 13 years and the estimated economic life of the leased property is 15 years. The lease does not contain automatic title transfer or a bargain purchase option. Lease payments are $9,000 per year, payable each December 31. The incremental borrowing rate for Wilcox is 12 percent and the implicit interest rate (known by Wilcox) is 10 percent. The company uses straight-line depreciation for this type of equipment.

Provide the necessary journal entries to record the transactions for Wilcox for the period January 2, 2011 through December 31, 2012.

Reference no: EM13137115

Questions Cloud

Economic life of the equipment : On January 1, 2011, Franklin Industries leased equipment on an eight-year term at $15,000 annual rental payments, paid in advance. There is a bargain purchase option on December 31, 2018 (end of lease), of $24,000. The economic life of the equipme..

Population health framework : Discuss how these three determinants combine and affect the equity (or inequity) of the population group you have chosen Stakeholders, this includes

Conclude types of batteries are having same mean life : Variance hour 100 and battery y: sample size 12,mean hour 1020,variance hour 121. can you conclude that two types of batteries are having the same mean life?

What is the total cost to be allocated to city department : Sanilac County has a lease on a lawn mower for $2500 per month and $.02 per minute of operation. Operating costs for fuel, oil, technicians, and so on are all variable at $.03 per minute. Departments had projected a need for 100,000 minutes per mo..

Necessary journal entries to record the transactions : Provide the necessary journal entries to record the transactions for Wilcox for the period January 2, 2011 through December 31, 2012.

What was the percentage yield : When 4.03 g of CH3OH was mixed with 6.33 g of O2 and ignited, 3.92 g of CO2 was obtained. What was the percentage yield?

How many people be surveyed to estimate who weigh more : How many people must be surveyed if we want to estimate the percentage who weigh more than 180 pounds? Assume that we want 96% confidence.

Economic effects of the property tax : Discuss the economic effects of the property tax. Consider the fairness, purpose, and use of the tax. Provide appropriate examples.

Calculate the number of units circle must sell to break even : Circle Corporation makes a product that sells for $400 per unit. The variable costs to make this product are $220 per unit. Fixed costs total $750,000 for the year. Circle currently sells 5,000 units each year.

User Account

All Pages