Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Problem - Tom Ltd manufactures specialised moulding machinery for both sale and lease. Tom Ltd leased a moulding machinery to Smith Lid on 1 July 2019 for five years. The machinery has a fair value of $733,974 at the inception of the lease. The machinery is expected to have an economic life of six years, after which time it will have an expected residual value of $100,000. There is a bargain purchase option that Smith Ltd will be able to exercise at the end of the fifth year for $150,000. There are to be five annual lease payments of $200,000, the first being made on 30 June 2020. Included within the $200,000 lease payments is an amount of $20,000 representing payment to the lessor for the insurance and maintenance of the machinery. The machinery is to be depreciated on a straight-line basis. The rate of interest implicit in the lease is 12%.
Required -
a) Prepare the minimum lease payment schedule for Smith Ltd for the first 3 years.
b) Prepare the journal entries in the books Smith Ltd for the years ending 30 June 2020 and 30 June 2021.
Concord Inc. and Ivanhoe Co. have an exchange with no commercial substance. What amount should Concord Inc. record for the asset received
Paper Clip Company sells office supplies. Utilities for the store $10,300 and Sales commissions $10,000. What is cost of goods sold
Prepare a Journalize Baker Company's transactions on June 2, June 8, and June 10.June 2 Purchased goods from Mitchell Company on account
What are the total amounts of deductions for and from AGI that Kim may take during 2018 with respect to the condominium
Kent Manufacturing produces a product that sells for $50.00. Compute the revised break-even point in dollars with the purchase of the new machine
Location C requires $40,000 payments at the beginning of each of the next twenty-five years. Which option is the least costly to the company
ACC 322 Final Project: Nonprofit Accounting Guidelines. Prepare a statement of activities for the year ended December 31, 2014
The corporation issued half the stock for cash at $8 per share, earned $336,000 during the first three months of operation, and declared a cash dividend of $60,000. At the end of the year, what is the balance in additional paid-in capital?
The apartment building is in an exclusive part of the city, and Benny is an active participant. Write a letter to Benny explaining what effect loss will have
What is the incremental contribution margin per container from further processing the honey into candies
Which is the Source documents? do not provide objective evidence about transaction. / are a source of accounting information.
What amount should Emig report in its 2011 income statement as loss on extinguishment of debt (ignore taxes)
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd