User Account

All Pages

Prepare the amortization table for the lease receivable

Assignment Help Accounting Basics
Reference no: EM133145631

Question - On December 31, 2021, Mondstadt Corporation leased a machine to CAS Company for a five- year period requiring payments of P100, 000 every December 31. The first periodic payment is due December 31, 2021. The machine cost P466, 664, which is the fair value at the commencement date. The machine has a useful life of six years with P80, 000 residual value guaranteed by the lessee at the end of the lease term. Mondstadt Corporation's implicit interest rate is 10%. MONDSTADT Corporation appropriately recorded the lease as a direct financing lease.

Required -

1. Compute the amount of gross investment.

2. Compute the amount of net investment.

3. Compute the amount of unearned interest income.

4. Prepare the amortization table for the lease receivable.

5. Prepare the necessary journal entries for 2021.

Reference no: EM133145631

Questions Cloud

What total amount should be recognized as loss on factoring : The finance company assessed a fee of 2% and retains a holdback equal to 10% of the accounts receivable. What total amount should be recognized as loss
What is the company average accounts receivable : The company averages $2,750 in sales each day (all customers take credit). What is the company's average accounts receivable
Compute the net present value of this project : Incremental Cash Flows from Operations Year 1-5 = $290,000 per year. Compute the net present value of this project if the firm's cost of capital is 10%
Calculate the store return on assets ratio : A cost of goods sold of $69,000, expenses of $82,000, and net profit after taxes of $29,000. Calculate the store's return on assets ratio
Prepare the amortization table for the lease receivable : MONDSTADT Corporation appropriately recorded the lease as a direct financing lease. Prepare the amortization table for the lease receivable
Explain the ways of categorising control processes : Which of the following are ways of categorising control processes?
What amount should be recognized as gain on reversal : What amount should be recognized as gain on reversal of impairment for the year ended December 31, 2022
Explain different methods for cash transactions : Explain different methods for cash transactions, and the costs associated with each. Provide in-text citations and references for your supporting materials
Implement an evidence-based model approach : You have been functioning in your COO role for several months and have a relatively solid understanding of the quality performance present in the organization.

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