User Account

All Pages

Prepare the appropriate journal entries in the records

Assignment Help Financial Accounting
Reference no: EM132535104

On 1 July 2019, La Ltd leased a machinery from Trobe Ltd to be used in one of its the mining operations. The machinery cost Trobe Ltd $120 307, considered to be its fair value on that same day.

The capital/finance lease agreement contained the following provisions:

The lease term is for 3 years, commencing on                           1st July 2019

The lease is cancellable and with a 10 % charge of the leased asset's fair value from the lessor

Annual lease payment, payable on 30 June each year                                $39,000

Estimated useful life of machinery                                                            4 years

Estimated residual value of the machinery at the end of useful life                  $8,000

Bargain purchase option that La Ltd can exercise at the end of lease term        $16,000

Interest rate implicit in the lease                                                                7%

REQUIRED:

Question 1. Calculate the present value of lease lease liability on 1st July 2019.

Question 2. Prepare the appropriate journal entries in the records of La Ltd only for the year ended 30 June 2020.

Reference no: EM132535104

Questions Cloud

What will the beta of your portfolio be : If you put 30% of your money in BSRM, 40% in KSRM and 30% in ACI, what will the beta of your portfolio be?
How much is the bond worth today : Suppose a risk-free bond promises to pay RM2,249.73 in 3 years. If the going risk-free interest rate is 4%, how much is the bond worth today?
How much research and development cost should be : How much research and development cost should be expensed in the year to 30 June 2019? How much development expenditure should be amortised
Calculate the overall gain of this cascaded amplifier : Calculate the input impedance of the second stage and Calculate the overall input and output impedances - Calculate the overall gain of this cascaded amplifier
Prepare the appropriate journal entries in the records : Prepare the appropriate journal entries in the records of La Ltd only for the year ended 30 June 2020. Calculate the present value of lease
Define discretionary and committed fixed cost with example : The sales price is RM13 per unit. Another company offered to buy 50 000 units at price of RM 500 000. Should they accept the special order?
What is the npv as a function of cost of capital : What is the NPV as a function of cost of capital (r) of the "Ultimate PlayStation Killer"?
Account grows to four times the initial investment : Given the power of compounding, shouldn't it take less time for the money to double the second time? Explain briefly
Relatively high non-interest expense : This question involves distinguishing small/medium banks from very large banks. For the following ratio descriptions, indicate whether they generally

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