User Account

All Pages

Prepare LBJs journal entries on January

Assignment Help Accounting Basics
Reference no: EM133059933

Question - LeBron James (LBJ) Corporation agrees on January 1, 2020, to lease equipment from Wildhorse, Inc. for 3 years. The lease calls for annual lease payments of $18,000 at the beginning of each year. The lease does not transfer ownership, nor does it contain a bargain purchase option, and is not a specialized asset. In addition, the useful life of the equipment is 10 years, and the present value of the lease payments is less than 90% of the fair value of the equipment.

Prepare LBJ's journal entries on January 1, 2020 (commencement of the operating lease), and on December 31, 2020. Assume the implicit rate used by the lessor is unknown, and LBJ's incremental borrowing rate is 5%.

Reference no: EM133059933

Questions Cloud

What is the arbitrage profit earned from this strategy : If arbitrage is possible, design a strategy to take advantage of it. What is the arbitrage profit earned from this strategy
What is the present value of the option : Based only on the information above, what is the present value of the option to delay production of the drug, using the decision-tree method?
Building a solar power plant : Pinder Ltd is considering building a solar power plant. The solar power plant will cost $10.3 million immediately, and will take 1 year to build.
Sales volume impacting investment returns : Pinder Ltd is considering building a toy factory for $372,831. It is a five-year project, after which the disposal costs will cancel out the salvage value from
Prepare LBJs journal entries on January : Prepare LBJ's journal entries on January 1, 2020 (commencement of the operating lease), and on December 31, 2020. Assume the implicit rate used by the lessor
What is the value of the option to sell the solar power : Pinder Ltd is considering building a solar power plant. The solar power plant will cost $9.8 million immediately, and will take 1 year to build.
Review theories of cross-cultural management : Critically review the emergence of the international human resources function in tourism and hospitality organisations - review theories of cross-cultural
Wealth of pinder ltd shareholders : Pinder Ltd is considering investing $500,000 in a factory that will produce electric bicycles. Pinder Ltd has secured a contract with a major retailer who has g
What is the NPV break-even level of sales : What is the NPV break-even level of sales assuming a tax rate of 35%, a 10-year project life, and a discount rate of 12%

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