User Account

All Pages

New lease laws

Assignment Help Financial Accounting
Reference no: EM133306525

Case : New Lease Laws

Table Corp. enters into a new lease for a machine on 1/1/2022 with the following terms:

• Length of lease: 8 years, after which ownership resorts back to the lessor

• Lease payment: $50,000 due on the end of each year

• The machine is expected to last 8 years and have no residual value

• The applicable interest rate is 10%

• There is no bargain purchase option

• The machine has no alternative use to the lessor at the end of the lease term

a) Assuming the lease is classified as an operating lease under the new accounting laws for leases, please provide the journal entry Table Corp. will record on 1/1/2022:

b) Assuming the lease is classified as an operating lease under the new accounting laws for leases, please provide all journal entries Table Corp. will record on 12/31/2022 in relation to this lease:

c) Assuming the lease is classified as a finance lease under the new accounting laws for leases, please provide the journal entry Table Corp. will record on 1/1/2022:

d) Assuming the lease is classified as a finance lease under the new accounting laws for leases, please provide all journal entries Table Corp. will record on 12/31/2022 in relation to this lease:

e) Under the new leasing laws, this lease would be classified as:

Reference no: EM133306525

Questions Cloud

Discuss skills and strategies essential for the interview : Discuss the skills and strategies essential for the interview based on the given real interview scenarios and personal experiences. Then, do simple and short
Portfolio presentation description : e-portfolio should be in the form of a training manual that includes detailed explanations and instructions. Create and analyze an income statement
Management and managerial skills : What is emotional intelligence (EI) and what does it have to do with management and managerial skills ?
Describe the ada analysis you would use to determine : The District Manager has come to you for advice. Has there been a valid request for an accommodation? Describe the ADA analysis you would use to determine
New lease laws : Assuming the lease is classified as an operating lease under the new accounting laws for leases,
What can employers do to increase diversity in terms of hr : What can employers do to increase diversity in terms of HR Management?Why is diversity important in terms of HR Management?
What is default correlation : What is the default correlation between firms A and B? Please show the calculations.
What are some signs of a struggling elementary reader : What are some signs of a struggling or at-risk elementary reader? Explain how one might identify the reader and support his or her reading development
Software cost case : Your company paid recently $90,000 to purchase a license for 3 years to use generic cloudbased software to account for its various leases.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Do see any other issues or problems with the auditors work

Do see any other issues or problems with the auditors work or client documentation? Did they perform all of the steps associated with the audit program?

  Check off approach during the audit

Evaluate the pros and cons of auditors using a “check off” approach during the audit in general as compared to trying to figure out managers’ motivation. Which approach do you prefer? In your answer, consider different issues such as auditing standar..

  Determine which measure of profitability is probably

Determine Which measure of profitability is probablyof greatest interest to the investing public? Why? Evaluation the financial viability

  Calculate interest payable on capital to both the partners

Saloni and Srishti are partners in a firm. Calculate interest payable on capital to both the partners during the financial year 2016-2017

  Evaluate first interest payment on december

Record the initial bond issuance on June 30 2010 in general journal form and record the first interest payment on December 31, 2010

  Journalize the partnership reciept of assets

Journalize the partnership reciept of assets, the liabilities from simson and Gonzales record each assets at current market value with no entry

  How much is venice company equity

One month after the loan was obtained, Venice Company paid AB Finance P300,000 plus interest. How much is Venice Company equity

  What should be the charge for depreciation of this equipment

On January 1, 2012, Forbes Company purchased equipment at a cost of €50,000. What should be the charge for depreciation of this equipment

  What is the net present value of the project

Ables Enterprises has an investment proposed by a division manager. Here are the estimates from the proposal: 1. The required investment for the project is $1,500. 2. The investment will result in two years of cash inflows of $1,000 each, assumed a..

  What is the largest amount of materiality

What is the largest amount of materiality (tolerable misstatement) that the auditor should consider when auditing current assets?

  What is the maximum annual interest rate

What is the maximum annual interest rate that you could have for this loan to prevent you from paying more than $1,500 per month toward your mortgage?

  What information is contained in each section

What are the three sections of a comprehensive annual financial report (CAFR)? What information is contained in each section? How do the minimum requirements for general purpose external financial reporting related in scope to the CAFR?

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