User Account

All Pages

Prepare the entry to record the lease

Assignment Help Accounting Basics
Reference no: EM131129807

1. James Morrison Corporation leases new equipment on December 31, 2010. The lease transfers ownership of the equipment to James Morrison at the end of the lease. The present value of the lease payments is $192,000. After recording this lease, James Morrison has assets of $1,800,000, liabilities of $1,100,000, and stockholders' equity of $700,000. 

(a) Prepare the entry to record the lease, and 

(b) Compute and discuss the debt to total assets ratio at year-end. 

Reference no: EM131129807

Questions Cloud

Determine the effect on net income and earnings per share : Issue 60,000 shares of common stock at $45 per share. (Cash dividends have not been paid nor is the payment of any contemplated).
Find quantity of each chocolate bar you should manufacture : Find the quantity of each chocolate bar you should manufacture to maximize your daily profit. Write the inequalities to describe each objective and constraint.
Secured bonds have specific assets of the issuer pledged : When seeking long-term financing, an advantage of issuing common stock over issuing bonds is that tax savings result.
The human rights crises in iraq and syria : make a position paper - The topics are -THE HUMAN RIGHTS CRISES IN IRAQ AND SYRIA- THE IMPACT OF TERRORISM AND EXTREMIST THINKING ON THE RIGHTS OF WOMEN IN MIDDLE EAST
Prepare the entry to record the lease : James Morrison Corporation leases new equipment on December 31, 2010. The lease transfers ownership of the equipment to James Morrison at the end of the lease.
Prepare the entries to record the mortgage loan : Nitro-Sort Corporation issues a $350,000, 6%, 15-year mortgage note to obtain needed financing for a new lab.
Why a barrel of oil can be used only once : Explain why a barrel of oil can be used only once as a fuel source, or in other words, - why can we not recycle high-quality energy resources.
Prepare the entry to record the redemption of the bonds : Hucklebuckers Corporation issued $400,000 of 10-year bonds at a discount. Prior to maturity, when the carrying value of the bonds was $390,000, the company retired the bonds at 99.
Discuss your strategy about psychology in everyday life : How to Effectively Learn and Remember" included in your lesson, the author recommends goal setting as a strategy for success.

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