User Account

All Pages

Record all appropriate journal entries for Summer Fun Inc

Assignment Help Financial Accounting
Reference no: EM132966564

Question - Summer Fun Inc. (lessor) agreed to lease an icecream truck to Icecream Party LLC (lessee) on September 30, 2020. The truck originally cost Summer Fun Inc. $115,000. The lease had a 6-year term and includes an implicit interest rate of 2% (8% annually). Icecream Party was given the option to purchase the truck on September 29, 2024 (4 years after the lease start date) for $28,000 when the fair value was expected to be $36,000. The first lease payment of $4,000 was due on September 30, 2020 and payments are due each quarter (December 31, March 31 and June 30) thereafter. Please answer the following questions.

A) What type of lease is this and why?

B) Record all appropriate journal entries for Summer Fun Inc. (lessor) and Icecream Party LLC (lessee) on September 30, 2020. Please clearly label your entries.

C) Record all appropriate journal entries for Summer Fun Inc. (lessor) and Icecream Party LLC (lessee) on December 31, 2020. Please clearly label your entries.

Reference no: EM132966564

Questions Cloud

Limitations of data collection in developing countries : Explain the limitations of data collection in developing countries and state the impact of telecoms data on improving data collection.
What is the maximum profit : Cully Furniture buys two products for resale: big shelves (B) and medium shelves (M). Each big shelf costs $500 and requires 100 cubic feet of storage space, an
Evaluate high school students reactions : A research worker plans to evaluate high school students' reactions to a new policy on closed campus stations. He locates himself near the office of the dean, w
Explain the rationale for hisense acquisitions : With reference to diversification, internationalization, and merger/acquisition theory, explain the rationale for Hisense's acquisitions?
Record all appropriate journal entries for Summer Fun Inc : Record all appropriate journal entries for Summer Fun Inc. (lessor) and Icecream Party LLC (lessee) on December 31, 2020. Please clearly label your entries
Responsibilities of the different stakeholders : Describe the responsibilities of the different stakeholders according to the OH&S Act?
Analyse the critical event policies and procedures : Analyse "The Critical Event" policies and procedures. Summarise your analysis for each document in relation to planning and managing conferences.
Production and expansion in the global marketplace : Evaluate whether globalization of production and expansion in the global marketplace can improve competitive advantage while decreasing costs.
Determine the amount of product costs : During the period, it sold 264 chairs. Determine the amount of product costs that would be allocated to cost of goods sold and ending inventory

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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