Prepare Martinez journal entries

Assignment Help Accounting Basics
Reference no: EM132707814

Question - On January 1, 2020, Martinez Animation sold a truck to Peete Finance for $44,000 and immediately leased it back. The truck was carried on Martinez's books at $40,000. The term of the lease is 3 years, there is no bargain purchase option, and title does not transfer to Martinez at lease-end. The lease requires three equal rental payments of $12,500 at the end of each year (first payment on January 1, 2021). The appropriate rate of interest is 4%, the truck has a useful life of 5 years, and the residual value at the end of the lease term is expected to be $14,000, none of which is guaranteed.

Required - Prepare Martinez's 2020 journal entries.

Reference no: EM132707814

Questions Cloud

Find what will be the firm operating cycle : Suppose that gabe has annual sales of $2 million,Assuming that all of gabe's sales are on credit, what will be the firm's operating cycle?
Name a genetically modified organism : Name a Genetically Modified Organism that is currently available at a general grocery store.
List the diseases that babies and children in usa : List some of the diseases that babies and children in the USA are routinely vaccinated against
Find what real effect on profit if the order is accepted : Sipacore Metal Works received an offer from a big-box retail company, What will be the real effect on profit if the order is accepted?
Prepare Martinez journal entries : On January 1, 2020, Martinez Animation sold a truck to Peete Finance for $44,000. Prepare Martinez's 2020 journal entries
Estimate annual cost savings available through relocating : Falkirk gathered on potential real estate savings through relocation, estimate the annual cost savings available through relocating some or all of accounting
What amount of the gain is Ethan allowed : On July 1, 2020, he sold the home and realized a $177,500 gain. What amount of the gain is Ethan allowed to exclude from his gross income
Explain how vaccines work : List reasons why people are worried about allowing their children to be vaccinated, including any scientific evidence to support these concerns
Determine the potential staff reduction : Determine the potential staff reduction and calculate the potential annual cost savings from electronic processing of 50% of the accounts payable checks.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Find the amount to be capitalised by this company

Final adjustments to the detecting equipment $12 500. Find the amount to be capitalised by this company as an intangible asset, for the 2019 financial year

  Reporting in the body of the financial statements

Reporting in the body of the financial statements is required for: A) loss contingencies that are probable and can be reasonably estimated. B) gain contingencies that are probable and can be reasonably estimated.

  If an iron industry has earned contribution of 200000 and

if an iron industry has earned contribution of 200000 and net profit of 150000 on sales of 800000. what would be

  Angies blooms purchased a delivery van for 30000 the

angies blooms purchased a delivery van for 30000. the company was given a 3000 cash discount by the dealer and paid

  What transfer price should be used on transfers

The Windshield division of Cargo Co. makes windshields for use in Cargo's Assembly division. The Windshield division incurs variable costs of $350.

  Explain the meaning of each of the simpson company ratios

Please review the given 6 ratios for Simpson Company and ABC Inc. for the year ended 2014, Explain the meaning of each of the Simpson Company ratios

  Relationship between business and society

According to the textbook, the current world economy is increasingly becoming integrated and interdependent; as a result, the relationship between business and society is becoming more complex. Use the Internet to research Apple. Submit a four to ..

  Read and complete case study 10-10 eat at my restaurant in

read and complete case study 10-10 eat at my restaurant in your text. address the following elements which are also

  Debit postings to work in process were direct materials

at may 31 2005 the accounts of yellow knife manufacturing company show the following. may 1 inventories-finished goods

  Clinic dollar growth in assets

What was the clinic's dollar growth in assets during 2008, and how was this growth financed?

  Northern gifts inc is concerned about its cash position at

northern gifts inc. is concerned about its cash position at the end of november because of the anticipated inventory

  Trial balance

The trial balance of Lozier Inc. shows a $52,000 outstanding balance in Accounts Receivable at the end of 2008. During 2009, 80 percent of the total credit sales of $2,600,000 was collected, and no receivables had been written off as uncollectable.

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