User Account

All Pages

Prepare the necessary journal entries for universal on jan

Assignment Help Financial Accounting
Reference no: EM132841262

Universal Inc. leased equipment to United Company on January 1, 2021. The leased equipment's book value is $480,000 with no residual value at the end of its useful. The remaining useful life of the leased equipment is 12 years. The lease payments were calculated to provide the lessor a 10% return. Ten annual lease payments of $70,000 are due at the beginning of each year beginning January 1, 2021. The present value of an annuity due of $1 at 10% for ten periods is 6.75902. Both companies use the straight-line method in depreciating/amortizing their assets.

Required:

A. Consider this to be a finance lease. Round your answers to the nearest whole dollar amounts.

Problem 1: Prepare the necessary journal entries for United (Lessee) on January 1, 2021.

Problem 2: Prepare the necessary journal entries for United (lessee) on December 31, 2021, the end of the first reporting period

B. Consider this to be an operating lease. Round your answers to the nearest whole dollar amounts.

Problem 1: Prepare the necessary journal entries for United (lessee) on December 31, 2021, the end of the first reporting period.

Problem 2: Prepare the necessary journal entries for Universal (Lessor) on January 1, 2021.

Problem 3: Prepare the necessary journal entries for Universal (lessor) on December 31, 2021, the end of the first reporting period.

Reference no: EM132841262

Questions Cloud

Prepare the shareholders equity section of the nicklaus : In late 2017, the Nicklaus Corporation was formed. Prepare the shareholders' equity section of the Nicklaus balance sheet as of March 31, 2018.
Primary channel of communication for delivering : Business letters are a primary channel of communication for delivering messages to recipients outside of an organization.
What are some of the challenges you will still face : Imagine that you have a confrontational adult student who is not taking responsibility for their own actions and is instead of blaming you as the instructor.
Assessment of the key competitive forces : Your goal in this case is to perform a strategic analysis of Airbnb by identifying key challenges faced by the company and providing your recommendations
Prepare the necessary journal entries for universal on jan : Prepare the necessary journal entries for Universal (lessor) on December 31, 2021, the end of the first reporting period. Universal Inc. leased equipment.
How we can improve the situation for generations to come : Many individuals have been to a corner market in a city and noticed soggy lettuce, a moldy cucumber or other far from fresh produce being offered.
Presentation about gopro cameras : I need a presentation about the gopro cameras. The class is Principles of ManagingOrganizations
Contrast coercive forces and normative forces : 1. Compare and contrast coercive forces and normative forces. 2. Explain the various processes by which institutional similarity occurs.
Identify your approach in handling conflict : For your final assignment, utilize the scholarly resources and the knowledge garnered through completing this course concerning the conflict resolution process.

Reviews

Write a Review

Financial Accounting Questions & Answers

  What is the amount of total assets after all transactions

What is the amount of total assets after all transactions have been recorded? Sent a check for $5,500 in partial payment of the amount due creditors.

  Estimated median household income in america

What is the established or estimated median household income in America?

  How to account for tag in consolidated financial statements

How to account for Tag in the consolidated financial statements for the year ended 31 Dec x5. Ash, a holding company, decided to sell its 100% owned subsidiary

  What are the times interest earned and cash coverage ratios

What are the times interest earned and cash coverage ratios for this company? Round your final answers to one decimal place.

  Prepare entries to record the transactions for piere imports

Piere Imports uses the perpetual system in accounting, Prepare entries to record the transactions assuming that Piere Imports records invoices at gross amounts.

  Compute what will be the resulting percentage change

Compute What will be the resulting percentage change in earnings per share if they expect operating profit to change 4.5 percent?

  Calculate the discount rate, npv and irr

Virgin is considering buying ten new A380s now for $100 million each. Calculate the discount rate, NPV and IRR of this project

  Make adjusting journal entries as of february

Make Adjusting journal entries as of 29 February 2020. Narrations are required. Selected accounts of Rose's Real Estate are shown at 29 February 2020

  Find what are the impacts on operating cycle

Find What are the impacts on operating cycle and cash conversion cycle due to the increase in the payment period (i.e., average collection period)

  Post each transaction to the appropriate ledger accounts

Post each transaction to the appropriate ledger accounts (T account). Dr. Faial javed invested $250,000 cash in the business in exchange

  What amount of the bond discount should be amortized

Using effective interest method, what amount of the bond discount should be amortized for the six months ended December 31, 2019

  Determined using a job-order costing system

Madison Company manufactures its only product using a single machine that has the capacity to operate 2,000 machine hours a year. This machine is rented at an annual cost of $100,000 and is the company's only manufacturing overhead cost. Madison's pr..

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