User Account

All Pages

Prepare all the journal entries

Assignment Help Financial Accounting
Reference no: EM133003711

Question - On January 1, 20X4, Solarcom Inc. entered into a new lease for equipment with the following terms:

Annual lease payment due on January 1,20x4 for $55,000.

Included in the lease payment is $3,000 for insurance and maintenance costs.

The lease term is seven years.

At the end of the lease there is a guaranteed residual amount of $10,000, which Solarcom expects it will pay.

The lease has an implied interest rate of 6.2%, which is known to Solarcom.

Solarcom has a calendar year. Useful life of the asset 10 year.

Fair value of the asset at the time of inception of lease is $314,000.

Required -

1. Determine the classification of the lease.

2. Prepare all the journal entries for 20X4 related to this lease. Note that M Solarcom has a December 31 year end.

Reference no: EM133003711

Questions Cloud

Determine and find what is the project pi : Find What is the project's PI? A project has an initial cost of $35,000, expected net cash inflows of $9,000 per year for 12 years, and a cost of capital of 9%.
Identify profitability ratios that consider relevant : Using Walmart, please identify profitability ratios that you consider relevant to evaluate your company. Provide a table of the past 3 years of ratios
What amounts is most likely the sale price of the asset : Stonebridge Inc. sells an intangible asset with a historical acquisition of £17 million. What amounts is most likely the sale price of the asset
What are the net operating cash flows in years one : What are the net operating cash flows in Years one? What is the additional Year-3 cash flow (i.e, the after-tax salvage and the return of working capital)?
Prepare all the journal entries : Included in the lease payment is $3,000 for insurance and maintenance costs. Prepare all the journal entries for 20X4 related to this lease
What would new monthly car payment be : ames makes a care payment of $374.22 a month. What would his new monthly car payment be if he switched his loan to the credit union.
Describe trading and available for sale securities : Describe trading and available for sale securities and the past accounting for each. Describe the new method of accounting for the securities beginning in 2018.
Explain the timeline for the project : The CEO John is responsible for evaluating potential projects and financial decisions. What is the NPV of the project? Should John accept the project
Conduct investigation of security management issues : Conduct investigation of security management issues in organization by analysing requirements, plans and IT security policies

Reviews

Write a Review

Financial Accounting Questions & Answers

  What are the the main classifications of accounts

What are the the main classifications/types of accounts? Which is a proper listing of the four general-purpose financial statements?

  How does starbucks make money

Use Starbucks financial statements for fiscal year 2017 (year ended September 29, 2017) to answer the following:

  Find how many shares of stock were outstanding

The rights offer was for $8.05 million with a per-share subscription price of $35. How many shares of stock were outstanding before the offering?

  Analyze the information within the disclosure statements

Conceptual Framework, Analyze the information within the disclosure statements for information that would interest the investors of your company.

  How much total tax should xyz corporation pay

How much total tax (capital gains and documentary stamp) should XYZ Corporation pay if it sold 51,373 shares of XYZ stocks at PhP6 per share?

  Journal entries for estimated bad debts

journal entries for estimated bad debts provision.nbspcomputing bad debts and preparing journal entriesnbsp the trial

  Explain decision to shelve the river-blindness drug

Explain whether or not YOU (your gut reaction) think his decision to shelve the river-blindness drug at Time2.5 is ethical or unethical

  Do think techniques can be used for all type of organization

Do you think these techniques can be used for all types of organizations (for-profit, not-for-profit, service, retail, manufacturing, etc.)

  Prepare consolidation journal entries for year ending june

Gotham Ltd purchased 100% of the issued shares, Prepare consolidation/elimination journal entries for the year ending 30 June 2019 assuming a tax rate of 30%.

  What is the partnerships basis in the assets contributed

Annie, Betty, and Carla formed the ABC partnership. They contributed the following assets. Annie contributed cash of $20000 and services valued at $60000. Betty contributed land with a basis of $50000 and FMV of $105000. Attached to the land is a mor..

  What is nyala cost of debt for the new issue

What is Nyala's cost of debt for this new issue? Nyala Inc. is considering issuing bonds to the market to raise $3.5 million. The bonds have 9% coupon rate.

  Determine the revised estimate of the dividend received

Determine the revised estimate of the dividend received by unsecured creditors without priority. The Creditors of Rogerod Corporation agreed to a LIQUIDATION.

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