Prepare the journal entry for the first year of the lease

Assignment Help Accounting Basics
Reference no: EM133038837

Question - On January 1, 2019, A Brunch of Fun (lessor) entered a lease to rent out office space. The lease requires the lessee to pay A Brunch of Fun $200,000 per year, at the beginning of each year, for 10 years. The lease is non-cancellable and non-renewable. The land and building's cost and current fair value is $5 million, with $2 million allocated to the land and $3 million to the building. The building's estimated residual value at the end of its 30-year useful life is $0. The interest rate implicit in the lease is 10%.

Prepare the journal entry for the first year of the lease for the lessor. Assume that the assets have already been capitalized. Enter a debit as positive, a credit as negative. For any accounts that are not applicable, enter a 0.

Reference no: EM133038837

Questions Cloud

How many dollars of revenue must the company generate : Winny's Office Furniture has a contribution margin ratio of 16%. If fixed costs are $184,800, how many dollars of revenue must the company generate
How do you think such a move will affect network performance : How do you think such a move will affect network performance? Identify a couple of pros and cons.
What exchange ratio will Loki need to offer : If Thor's pre-merger price per share was $42 and Loki's was $48, what exchange ratio will Loki need to offer
Family housing on a military installation : A contracting officer is working on a 500,000 acquisition involving architect-engineer services for family housing on a military installation.
Prepare the journal entry for the first year of the lease : Prepare the journal entry for the first year of the lease for the lessor. Assume that the assets have already been capitalized
Write an essay comparing or contrasting the two topics : Develop a strong thesis statement for your essay that includes your two topics from the list above; your three to five subtopics; and a claim
Describe three business objectives : Case study Eva is a banking specialist at a credit union. It is her responsibility to deal with international finance enquiries and transaction for clients incl
What was number of units of product in beginning inventory : Pyne Company produces a single product. The company has 60,000 units in its ending inventory. What was number of units of product in beginning inventory
New semiannual interest? payment : A ?$1,000 Treasury? inflation-protected security is currently selling for ?$935 and carries a coupon interest rate of 3.36 percent.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Describe budgeting- objective and impact on human behavior

Describe budgeting; it's objective, and its impact on human behavior. Citations, references, and outside research are required

  Complete the statement of retained earnings

Jim invested $100,000 in cash and $50,000 in equipment in the company. The company prepaid for insurance with $1,200 cash.

  Budgeted volume-standard volume-overhead rate

Printers Inc. manufactures and sells a mid-volume color printer (MC) and a high-volume color printer (HC). Each MC requires 100 direct labor hours to manufacture, and each HC requires 150 direct labor hours.

  Problem regarding the bank reconciliation

After checking the day's restau- rant receipts and the original deposit slip, the bookkeeper realized the bank was correct and that he had transposed the digits when he recorded the transaction. How should this be handled on the bank reconciliatio..

  Prepare awesomes August journal entry

Awesome Company sold 15,000 annual subscriptions on August 1, 2019, for $20 each. Prepare awesome's August 1, 2019, journal entry

  What is cost of equity using the capital asset pricing model

What is the cost of equity using the capital asset pricing model for the Collins Company if this company has a beta of 1.8 and that the risk-free rate

  Define how would the overhead cost assigned to product xr-9

how would the overhead cost assigned to Product XR-9 change under activity based costing compared to their current accounting methods

  Prepare a production budget for supermix for july to october

Pearl Products Limited of Sarnia, Ontario, manufactures & distributes toys throughout central Canada. Prepare production budget for Supermix for July to October

  What amount should guess report as dividend income

cCash dividend of P8 per share. In the income statement for the year ended December 31, 2012, what amount should Guess report as dividend income?

  What is ace taxable income

This year, Ace Corp ( C-Corp) had ordinary income from operations of $30,000 , What is Ace's taxable income

  Calculate the companys total required production in units

Calculate the company's total required production in units of finished product for the entire three-month period ending September 30.

  Zander companys calendar-year 2009 income statement shows

zander companys calendar-year 2009 income statement shows the following net income 395000depreciation expense 48980

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd