User Account

All Pages

Prepare the journal entry on January

Assignment Help Financial Accounting
Reference no: EM132863809

Question - Transport Corporation signs an agreement on January 2, 2020 to lease trucks for a six-year period. The current market value of the trucks on January 2 is $480,000. The lease agreement calls for annual payments of $80,117. The first payment is made on January 2, 2020, all other payments are made on December 31 of each year. The lease agreement calls for a 8% interest rate. The estimated remaining life of the delivery equipment is six years with a residual value of $10,000. Ownership of the delivery equipment will transfer to Warren Corporation at the end of the lease term.

Required -

a) Prepare the journal entry on January 2, 2020, to record the lease agreement and the first lease payment.

b) Prepare the entry on December 31, 2020, to record the amortization expense.

Reference no: EM132863809

Questions Cloud

Describe the overall financial health of walmart : Describe the overall financial health of Walmart. Do the reports show an increase in net income, total revenues, total assets, and earnings per share?
Description of disadvantaged or vulnerable population : Post a brief description of the disadvantaged or vulnerable population you selected.
Give examples of realistic personal and professional goals : Give examples of "realistic" personal and professional goals (one each).
What new objectives should be added to conceptual framework : What new objectives should be added to the conceptual framework? Identify the goals and purposes of financial reporting for business enterprises.
Prepare the journal entry on January : The current market value of the trucks on January 2 is $480,000. Prepare the journal entry on January 2, 2020, to record the lease agreement
Analyze how fraud risk management principles may be used : The correlation, Analyze how fraud risk management principles may be used by companies to develop and maintain effective internal control.
Transcultural global ethics : Transcultural global ethics always maintains the value of human rights. Have Google's operations been consistent with the value of human rights?
Nestle india creating new csr strategy : Nestle should discontinue their CSV activities and only focus on the CSR compliance within the law in India?
Governing bodies that impact airbnb business : What are the impact these laws, treaties acts, and governing bodies have on their business. Differentiate it with their business in the United States

Reviews

Write a Review

Financial Accounting Questions & Answers

  What would pay for a debenture bond

What would you pay for a $125,000 debenture bond that matures in 15 years and pays $6,250 a year in interest if you wanted to earn a yield of 2%?

  Calculate the amount of the deferred tax asset left at end

PeeDee enterprises had a net operating loss of $300,000. Calculate the amount of the deferred tax asset left at the end of 2019 relating to the NOL.

  What is the weighted average pre tax cost of capital

The cost of equity is 12%, the cost of long term debt is 8%, and the cost of short term debt is 6%. What is the weighted average pre tax cost of capital (WACC)

  What was the cost of each acquisition

What was the cost of each acquisition? How was that cost allocated in each case? What amount of goodwill was recorded by each firm?

  Calculate the EAW of purchasing the equipment

Calculate the EAW of purchasing the equipment. (Determine the contribution of each component of the cash flow to the EAW, then add together.)

  Prepare the statement of profit and loss of the company

Share opinion on the statement - " revenue from operations and earnings before interest, taxes, depreciation and amortization differs from each other" how?

  Find the recaptured depreciation

An equipment costing $20,000 for assembling an electronics assembly is being considered by Benny Inc. in Beaverville, OR. The equipment falls under three-year property class as per MACRS depreciation method. The equipment will have a salvage value of..

  Calculate what is Avery WACC

Avery Corporation's target capital structure is 35% debt, 10% preferred, and 55% common equity. Calculate what is Avery WACC

  When costs are rising and inventory quantities are stable

A company should accrue a loss contingency only if the likelihood that a liability has been incurred is: In a period when costs are rising and inventory quantities are stable, the inventory method that would result in the highest ending inventory is:

  Make net purchases and cos under accrual basis

Make Net purchases and COS under accrual basis method of accounting and Net purchases and COS under cash basis method of accounting.

  Compute the future Euro cash flow

Assuming that that the spot rate at expiration is €1.2/SF, compute the future Euro cash flow under the option-hedging strategy

  Identify which tests are best suited or not for a company

Of the following 5 Audit tests (Risk Assessment Procedures, Test of Controls, Substantive Tests of Transactions, Analytical Procedures, and Tests of Details).

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