User Account

All Pages

Prepare all necessary journal entries for diamond

Assignment Help Accounting Basics
Reference no: EM133180176

Question - Diamond Company, a machinery dealer, leased a machine to Turtle Corporation on January 1, 2017. The lease is for an 8-year period and requires equal annual payments of $63,807 at the beginning of each year. The lease arrangement is non-cancellable. The first payment is received on January 1, 2017. Diamond had purchased the machine during 2016 for $376,000. Collectibility of lease payments by Diamond is probable. Diamond set the annual rental to ensure a 6% rate of return. The machine has an economic life of 9 years with no residual value and reverts to Diamond at the termination of the lease.

Required -

(a) Discuss the nature of the lease arrangement. Is it an operating lease or a finance lease?

(b) Prepare all necessary journal entries for Diamond for 2017?

Reference no: EM133180176

Questions Cloud

Compare and contrast the films : How do the films depict your national, ethnic, racial heritage, or personal identity? Compare and contrast the films.
What is your current budget : Layoffs should be a last resort. What is your current budget? What is a 5% cut to your budget? What is the first thing you would cut
What gaming console and controllers : What gaming console and controllers would you need? Assume a wide variety in the games that can be played, including Madden NFL, League of Legends,
Compute the after tax interest expense for a firm : Compute the after tax interest expense for a firm with interest on excess cash = $2000, interest on debt = $7000, and a tax rate of 30%
Prepare all necessary journal entries for diamond : Diamond Company, a machinery dealer, leased a machine to Turtle Corporation on January 1, 2017. Prepare all necessary journal entries for Diamond
How many shares are outstanding : Question - The authorized share capital of the Alfred Cake Company is 120,000 shares. How many shares are outstanding
Intended message regarding good vs. bad-morals or ethics : For each of the films, what do you believe was the intended message regarding good vs. bad, morals, or ethics? Explain.
Understand the management functions : It will be important to understand the management functions, which include planning, organizing, controlling, and leading
What is importance of employee-driven content : What is the importance of employee-driven content? To appeal to adult learners, what do delivery methods need to include, and why?

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