Prepare journal entries on the books of veronica company

Assignment Help Accounting Basics
Reference no: EM133141515

Question - On Jan 1, 2020, Veronica Company negotiated a 15-year lease fora building. The building has useful life of 20 years.

Before occupancy, the lessee incurred leasehold improvement of Php600,000 with useful life of 5 years.

The lessee is required to restore the building upon expiration of the lease. The estimated cost of restoration is Php644,000.

Annual payments of Php1,000,000 are payable to the lessor on Dec 31 of each of the 15 years of the lease term. The lease was negotiated to assure the lessor a 10% rate of return.

PV of an ordinary annuity of 1 at 10% for 1.5 periods 7.606

PV of an annuity of 1 in advance at 10% for 15 periods 8.367

Required - Prepare journal entries on the books of Veronica Company for 2020?

Reference no: EM133141515

Questions Cloud

What should be reported as share premium on december : No other equity transactions occurred during 2020. What should be reported as share premium on December 31, 2020
What amount should be reported as bond interest expensed : Interest is payable semiannually January 1 and July 1. For the six months ended June 30, 2020, what amount should be reported as bond interest expensed
Determine the amount of capital loss carry forward : Silver has no un-recaptured net §1231 losses, and it made no other sales during the year. Determine the amount of capital loss carry forward
Important personal leadership learning : Describe the most important personal leadership learning you have taken from this class. Describe at least two effective ways organizations use symbols
Prepare journal entries on the books of veronica company : Before occupancy, the lessee incurred leasehold improvement of Php600,000 with useful life of 5 years. Prepare journal entries on the books of Veronica Company
CO7105 Advanced C++ Programming Assignment : CO7105 Advanced C++ Programming Assignment Help and Solution, University of Leicester - Assessment Writing Service
What is the company total budget for the next year : Interest expense = $37,750, 10-year fixed interest rate loan. What is the company's total budget for the next year for the four selected items
Explain concept of regression : Explain the concept of regression and point out its importance in business forecasting. Point out the role of regression analysis in business decision-making.
How much is the depreciation for the year : An accounting change was made in 2024 to reflect these additional data. How much is the depreciation for the year 2022

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is the amount of cash receipts budgeted for march

In recent years, Sands Retro Clothing has collected 45% of its sales in the month of the sale, 53% in the month that follows the sale.

  What effect does audit have on the whole public sector

How as auditing improved the public sector organization? What effect does audit have on the whole public sector

  Calculate its book value at the end of year

The company uses straight-line depreciation. Calculate its book value at the end of year 9

  A company had inventory on november 1 of 5 units at a cost

a company had inventory on november 1 of 5 units at a cost of 20 each. on november 2 they purchased 10 units at 22

  What is the deduction assuming the actual method was used

What is the deduction for 2015 assuming the actual method was used from beginning? Calculate depreciation only; truck is not limited by the luxury auto rules.

  What is the balance in cash

During February 2008, its first month of operations, the Rutwing Enterprises issued stock in exchange for cash of $25,000. Rutwing had cash revenues of $4,000 and paid expenses of $7,000. Assuming no other transactions impacted the cash account, w..

  Find what would be the balance reported for retained earning

If dividends of $78,900 were in arrears on preferred stock, what would be the balance reported for retained earnings?

  What is cash from operating activitieswhat is the most

the following information is available for toker companydec 31 2014dec 31 2013cash140000 97000retained

  Provide steps for starting a new business as a decorator

David Green is going to set up a sole trader business as a Decorator. Provide steps for starting a new business as a Decorator

  What should be the lowest acceptable transfer price

Division A makes a part that it sells to customers outside of company. What should be the lowest acceptable transfer price from the perspective of Division A

  What would be reported for ending merchandise inventory

Beginning Merchandise Inventory 100 units at $ 81, What would be reported for ending Merchandise Inventory on the balance sheet at December 31, 2018

  Explain the impact of the event would have on audit report

Explain the impact of the event would have on the Audit Report. You are the audit manager on the audit of WorkWe Limited for the year ended 30 June

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd