User Account

All Pages

Prepare the lease payments schedule for scooby ltd

Assignment Help Accounting Basics
Reference no: EM133171246

Question - On 1 July 2022, Shaggy Ltd leased a processing plant to Scooby Ltd. The plant was purchased by Shaggy Ltd on 1 July 2022 for its fair value of $353 000. The lease agreement contained the following provisions:

Lease term 3 years

Economic life of plant 5 years

Annual rental payment, in arrears (commencing 30/6/23) $120 000

Residual value at end of the lease term $50 000

Residual guaranteed by lessee $30 000

Interest rate implicit in lease 7%

The processing plant will be depreciated by Scooby Ltd on a straight-line basis. Scooby Ltd intends to return the processing plant to Shaggy Ltd at the end of the lease term. The lease has been classified as a finance lease by Shaggy Ltd.

Initial direct costs for setting up the lease were incurred by both parties: $1 595 for Scooby Ltd and $2731 for Shaggy Ltd.

Required -

1. Prepare the lease payments schedule for Scooby Ltd.

2. Prepare the journal entries in the records of Scooby Ltd on 1 July 2022 and for 30 June 2023.

3. Prepare the lease receipts schedule for Shaggy Ltd.

4. Prepare the journal entries in the records of Shaggy Ltd on 1 July 2022 and for 30 June 2023.

Reference no: EM133171246

Questions Cloud

What was the prevailing market rate when the bond was issued : Boyle received P4,411,076.80 upon issuance. What was the prevailing market rate when the bond was issued
Determine the weighted average cost of capital : The cost of new issues of ordinary shares 17%. Determine the weighted average cost of capital (WACC) for this project
Evolving nature of information systems : Ealuate the role and evolving nature of information systems in a variety of dynamic business environments - Write a short paragraph with at least two
Discuss the three sectors : Question - Discuss the three sectors and what is supplied from and to these three sectors from the company Berkshire Hathaway
Prepare the lease payments schedule for scooby ltd : Initial direct costs for setting up the lease were incurred by both parties: $1 595 for Scooby Ltd and $2731 for Shaggy Ltd. Prepare the lease payments schedule
How the liability to the lessor should be represented : Also show how the liability to the lessor should be represented in the statement of financial position of Granpa Ltd on June 30, 2020
Illustrate the calculations and a brief explanation : Illustrate the calculations and a brief explanation as to which option should be prioritised and why.
Computing depreciation for partial years : Computing Depreciation for Partial Years - A company with a calendar year-end purchases a machine costing $283,800 on July 1, 2020
What is the amortized cost of the instrument on december : On January 2, 2018, Estrella Company originates a 10-year 7% P4,000,000. What is the amortized cost of the instrument on December

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