User Account

All Pages

Prepare the journal entries necessary for a manufacturer

Assignment Help Accounting Basics
Reference no: EM132047081

Question - AC Toys Pty Ltd (AC Toys) acquired an item of plant and equipment with a fair value of $500,000 on 30 June 20X7 via a non-cancellable finance lease. The terms of the lease are as follows:

  • Ten equal annual payments of $100,000 (excluding GST) to be made in advance (the first installment was paid on 30 June 20X7)
  • Interest rate implicit in the lease is 20.24183%
  • Estimated useful life of the asset is 10 years. Straight-line depreciation method to be used
  • Present value of minimum lease payments (PVMLP) at 30 June 20X7 is $500,000.

Required:

(a) Prepare the journal entries necessary for a manufacturer or dealer lease in the accounts of the lessor for the financial years ended 30 June 20X7 and 30 June 20X8. (Assume that the cost of the asset to the lessor was $450,000.)

(b) Using the same information as for part (a) above, and assuming that the carrying value of the asset is $500,000 in the lessor's books, prepare the journal entries necessary for a finance lease in the accounts of a lessor that is not a manufacturer or dealer for the financial years ended 30 June 20X7 and 30 June 20X8.

Reference no: EM132047081

Questions Cloud

Determine the dimension of w : Let V = M2×2. Let W be the collection of all 2 × 2 symmetric matrices and U be the set of all 2 × 2 skew-symmetric matrices.
Provide five nutrition and diet habit tips to the student : Johnny wants to be the best athlete possible and his friends' concerns have made him think about his eating habits.
Why is it important for health care leaders to have : Health care is a dynamic and diverse environment. Health care professionals and patients come from a wide variety of backgrounds and cultures.
How much solution a do you combine : Solution B contains 20% salt. How much solution A do you combine with 3 liters of solution B, to obtain a result containing 10% salt?
Prepare the journal entries necessary for a manufacturer : Prepare the journal entries necessary for a manufacturer or dealer lease in the accounts of the lessor for the financial years ended 30 June 20X7
Explain to the average person how a soccer player is able : Your job is to explain to the average person how a soccer player is able to make a ball curve left or right. This involves aerodynamic forces.
Three-fourths the height of the previous bounce : The height of each bounce is three-fourths the height of the previous bounce. Find the total vertical distance the ball travels before coming to rest.
Explain to the average person how a soccer player is able : Your job is to explain to the average person how a soccer player is able to make a ball curve left or right. This involves aerodynamic forces.
Discuss societal factors including intellectual movements : Discuss societal factors including intellectual movements that promoted the progress of science from the time of Galileo (1564-1642) to the end of the lifetime

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