User Account

All Pages

Prepare the balance sheet presentation as of december

Assignment Help Accounting Basics
Reference no: EM131792439

Problem - Financial Statement Impact of a Lease

On January 1, 2008, Muske Trucking Company leased a semitractor and trailer for five years. Annual payments of $ 28,300 are to be made every December 31 beginning December 31, 2008. Interest expense is based on a rate of 8%. The present value of the minimum lease payments is $ 113,000 and has been determined to be greater than 90% of the fair market value of the asset on January 1, 2008. Muske uses straight- line depreciation on all assets.

Please answer the following question - Prepare a table to show the five- year amortization of the lease obligation. Identify and analyze the effect of the lease signing on January 1, 2008. Identify and analyze the effect of all transactions on December 31, 2009 (the second year of the lease). Prepare the balance sheet presentation as of December 31, 2009, for the leased asset and the lease obligation.

Reference no: EM131792439

Questions Cloud

What would the price-earnings ratio be : What would the earnings per share be immediately after the rights offering? What would the price-earnings ratio be immediately after the rights offering?
Why were canals cut through the wetlands : Why were canals cut through the wetlands? What effect has the logging of cypress trees in swampland had? Why is the area in twilight of its fishing industry?
Review problem of the omega corporation : The Omega Corporation has some excess cash that it would like to invest in marketable securities for a long-term hold.
Describe and explain potential purposes of budgets : What would the implications be for Zebedee Ltd's current pricing method if they decided to change to Activity Based Costing
Prepare the balance sheet presentation as of december : Problem - Financial Statement Impact of a Lease. Prepare the balance sheet presentation as of December 31, 2009, for the leased asset and the lease obligation
How much will the company be in arrears : If NHC earns $11,000,000 in the coming year after taxes but before dividends, and this is all paid out to the preferred stockholders.
Discuss double-declining-balance depreciation for buildings : transactions and adjusting entries were completed by a paper-packaging company called Gravure Graphics International during
Prepare the stockholders equity section of the balance sheet : Identify and analyze the effect of each transaction. Prepare the Stockholders' Equity section of the balance sheet
Compute the amount of the aftertax income : The treasurer of Kelly Bottling Company (a corporation) currently has $100,000 invested in preferred stock yielding 8 percent.

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