User Account

All Pages

Prepare all necessary journal entries for watkins for 2011

Assignment Help Accounting Basics
Reference no: EM131110297

1. Lessor Entries, Sales-Type Lease Watkins Company, a machinery dealer, leased a machine to Romero Corporation on January 1, 2011. The lease is for an 8-year period and requires equal annual payments of $38,514 at the beginning of each year. The first payment is received on January 1, 2011. Watkins had purchased the machine during 2010 for $170,000. Collectibility of lease payments is reasonably predictable, and no important uncertainties surround the amount of costs yet to be incurred by Watkins. Watkins set the annual rental to ensure an 11% rate of return. The machine has an economic life of 10 years with no residual value and reverts to Watkins at the termination of the lease.

(a) Compute the amount of the lease receivable.

(b) Prepare all necessary journal entries for Watkins for 2011. 

Reference no: EM131110297

Questions Cloud

Oligopolistic firm achieves profit maximization : List and explain the conditions under which the Oligopolistic firm achieves profit maximization and loss minimization. Be thorough. i. Using the MR MC approach, discuss how to determine when the oligopolistic firm maximizes profit or minimizes loss i..
What is an example of reasonable accommodation : Berks Manufacturing requires all of its nondisabled employees to retire when they become eligible for Medicare. What law is this employer breaking?
How would the project free cash flow be affected : If the firm in Problem 4 were to decide to use 50% debt, how would the Project Free Cash Flow be affected? Calculate the Project and Equity Free Cash Flows for the following scenario. We want to finance a project with 30% debt.
List and describe the function of the following scene editor : List and describe the function of the following Scene Editor layout tools: the Pointer tool, the Vertical tool, the Turn tool, the Rotate tool, and the Tumble tool.
Prepare all necessary journal entries for watkins for 2011 : Compute the amount of the lease receivable. Prepare all necessary journal entries for Watkins for 2011.
What occurs when the minimum wage is increased : Provide a graphical example of what could potentially happen to the number of people employed in an economy if the government were to decide to raise the minimum wage. Provide an explanation of what occurs when the minimum wage is increased.
What is the best estimate of the stocks price per share : The balance sheet show $ 20 million of short-term investment that are unrelated to investment, $30 million of long-term debt, $40 million of preferred stock, and $100 million of common equity. What is the best estimate of the stock's price per shar..
What is each driver price elasticity of demand : Two drivers—Walt and Jessie—each drive up to a gas station. Before looking at the price, each places an order. Walt says, “I’d like 10 gallons of gas.” Jessie says, “I’d like $10 worth of gas.” What is each driver’s price elasticity of demand?
How can we live humane and reasonably comfortable life : How can we live a humane and reasonably comfortable life, without degrading or destroying the resources and atmosphere of the planet? Can business bring prosperity to poor peoples with decent pay, hours, and working conditions?

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