Prepare tamarisk journal entries

Assignment Help Financial Accounting
Reference no: EM132962825

Tamarisk Company leased equipment from Costner Company, beginning on December 31, 2019. The lease term is 4 years and requires equal rental payments of $95,049 at the beginning of each year of the lease, starting on the commencement date (December 31, 2019). The equipment has a fair value at the commencement date of the lease of $340,000, an estimated useful life of 4 years, and no estimated residual value. The appropriate interest rate is 8%.

Problem 1: Prepare Tamarisk's 2019 and 2020 journal entries, assuming Tamarisk depreciates similar equipment it owns on a straight-line basis. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to 0 decimal places, e.g. 5,275.)

Reference no: EM132962825

Questions Cloud

What might be the payback : This would be 15 new Ford E-150 trucks. Each truck is worth $40,000. The savings in gas fuel is calculated to be $250,000 a year. What might be the payback?
Utilize hr forecasting procedures : Does Tesla and Toyota organization utilize HR forecasting procedures? If so, what ones to understand the relationship between demand and supply forecasting and
How long would take to double money : We guarantee to double your money sooner than you imagine." How long would it take to double your money at 14 percent, semiannual compounding?
Which bank should the firm choose : If money market rates are expected to average 6% during the year, and the firm wishes to maximize income, which bank should the firm choose
Prepare tamarisk journal entries : Prepare Tamarisk's 2019 and 2020 journal entries, assuming Tamarisk depreciates similar equipment it owns on a straight-line basis.
What is the maximum discount rate should offer : Currently, you have a line of credit with your bank at 6%, compounded monthly. What is the maximum discount rate you should offer? Assume 360 days in a year.
Calculate economic order quantity : Question - Cheeseburger and Taco Company purchases 18,285 boxes of cheese each year. Calculate Economic Order Quantity
How many shipments will the company order per year : If the reseller sells 180 cases per month, how many cases should it buy per order? How many shipments will the company order per year?
What amount of current liabilities is the company : Examine the balance sheet. What amount of current liabilities is the company reporting as of the end of the current accounting period?

Reviews

Write a Review

Financial Accounting Questions & Answers

  What will be Red depreciation expense

Red decided to change to the sum-of-the-years'-digits method. Ignoring income taxes, what will be Red's depreciation expense for 2021

  What various tool and responsibilities of financial manager

Discuss the various tools and responsibilities of a financial manager to bring value creation, including ways to control expenses, make more effective use

  Journalize the may transaction for purchase of raw materials

Journalize the May transactions for purchase of raw materials. Journalize the May transactions for factory labor costs. Journalize the May transactions for manufacturing overhead costs incurred. Journalize the May transactions for the assignment of d..

  What is the net income or loss of the agency for the year

eExpense vouchers for P4,500; Cost of goods sold identified with the agency sales, P72,000. What is the net income (loss) of the agency for the year, 2019?

  What is the variable wage cost per dollar of revenue

What is the variable wage cost per dollar of revenue? If the sales revenue on a given week was 2,000 dollars, what is the total wage cost for that week?

  What is the MIRR of the investment

Would you make the investment Why or why not Note that we discounted the project's negative cash flows back to the present using the project.

  Calculate the nominal rate of return for a stock

Calculate the nominal rate of return for perpetual preferred stock with a face value of $300, dividend of 8% of face value, and a current market price of $270

  Compute the total, controllable and volume variances

Alona Company’s overhead rate was based on estimates of $976,800 for overhead costs and 88,800 direct labor hours. Alona’s standards allow 5 hours of direct labor per unit produced. Production in May was 1,500 units, and actual overhead incurred in M..

  Product pricing-profit analysis with bottleneck operations

Palomar Chemical Company produces three products: ethylene, butane, and ester. Each of these products has high demand in the market, and Palomar Chemical is able to sell as much as it can produce of all three. The reaction operation is a bottleneck i..

  What unit cost figure is relevant for setting selling price

If the company wishes to sell them through regular distribution channels, what unit cost figure is relevant for setting a minimum selling price? Explain.

  Determine the total cost of inventory at year end

All delivered to Macko Furnitures on May 1 for 500 units and on July 30 for 200 units. Determine the total cost of inventory at year end

  Estimated depreciation expense for an asset is calculated

Once the estimated depreciation expense for an asset is calculated:

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