User Account

All Pages

Prepare lease amortization schedule and appropriate entries

Assignment Help Financial Accounting
Reference no: EM132488953

Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2021. Edison purchased the equipment from International Machines at a cost of $119,552. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Related Information:

  • Lease term2 years (8 quarterly periods)Quarterly rental payments$16,000 at the beginning of each period Economic life of asset years Fair value of asset$119,552 Implicit interest rate 8%(Also lessee's incremental borrowing rate)

Required:

Question 1: Prepare a lease amortization schedule and appropriate entries for Manufacturers Southern from the beginning of the lease through January 1, 2022. Amortization of the right-of-use asset is recorded at the end of each fiscal year (December 31) on a straight-line basis.

General Journal:

  1. Record the beginning of the lease for Manufacturers Southern 1/1/2021
  2. Record lease payment. (Jan 1, 2021)
  3. Record lease payment. (April 1, 2021)
  4. Record lease payment. (July 1, 2021)
  5. Record lease payment. (October 1, 2021)
  6. Record accrued interest. (December 31, 2021)
  7. Record amortization of the right-of-use asset forManufacturers Southern 12/31/2021
  8. Record lease payment (Jan 1 2022)

Reference no: EM132488953

Questions Cloud

Evaluate the cost of the ending inventory : What is the cost of its ending inventory? (Round the per unit cost to 2 decimal places and then round your answer to the nearest whole dollar.
Design an information system for fibre fashion : Design an information system for Fibre Fashion to assist with their business. You have discussed Porter's Value Chain in class and you should understand
Americans with disabilities act : Is an individual who is perceived as having a disability, but in fact has recovered from the disability or is not disabled, covered by the ADA
Prepare lease amortization schedule and appropriate entries : Prepare a lease amortization schedule and appropriate entries for Manufacturers Southern from the beginning of the lease through January 1, 2022
Describe the process of creating a unit plan : In 250-500 words, summarize and reflect on the process of creating a unit plan in English language arts. How does your unit plan help students successfully.
What is the annual depreciation for years : What is the annual depreciation for years 1, 3, and 6 for this asset, using the fixed depreciation percentages given by MACRS?(The percentages are 20.00%)
Determine mastery of identified standards : Your summative assessment should be designed to determine mastery of identified standards. Prior to completing the assessment, review the pre-assessment.
Employer workforce without violating the adea : Can an employer terminate older employees as a reduction in the employer's workforce without violating the ADEA (Age Discrimination in Employment Act)?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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