User Account

All Pages

Record its journal entry at the commencement of the lease

Assignment Help Accounting Basics
Reference no: EM132706659

Question - Skysong, Inc. leases a piece of equipment to Bucks Company on January 1, 2020. The contract stipulates a lease term of 5 years, with equal annual rental payments of $4,523 at the end of each year. Ownership does not transfer at the end of the lease term, there is no bargain purchase option, and the asset is not of a specialized nature. The asset has a fair value of $43,000, a book value of $38,000 and a useful life of 8 years. At the end of the lease term, Skysong expects the residual value of the asset to be $12,000, and this amount is guaranteed by a third party.

Required - Assuming Skysong wants to earn a 5% return on the lease and collectibility of the lease payments is probable, record its journal entry at the commencement of the lease on January 1, 2020.

Reference no: EM132706659

Questions Cloud

Describe the importance of map projections : Describe the importance of map projections, datums, and coordinate systems.
How are the effects of these transactions reported : Cameron Corporation purchased land for $333,000. How are the effects of these transactions reported on the statement of cash flows assuming the indirect method
Compute VV Current Ratio : Vaughn Vacuum's most recent balance sheet: Cash $700,000 Accounts Payable $1,200,000. Compute VV Current Ratio
Nuclear threats are posed by bitter rivalry countries : Nice run down. You state, "Nuclear threats are posed by bitter rivalry countries such as the Middle East, Asia, and several others, endanger global security.
Record its journal entry at the commencement of the lease : Assuming Skysong wants to earn a 5% return on the lease and collectibility of the lease payments is probable, record its journal entry at the commencement
Define cost object and cost allocation for your company : define cost object and cost allocation for your particular company. Then describe your decision in determining which cost calculation method to use for company
Tensions between privacy and security concerns : Read the Pew Research article, "Americans feel the tensions between privacy and security concerns."
Public policy is goal-oriented course of action : Public policy is a goal-oriented course of action that the government follows in dealing with a problem or issue in the country.
Prepare journal entries to record the items noted : Beginning-of-the-year Accounts Receivable balance was $24,800. Prepare (summary) journal entries to record the items noted above

Reviews

Write a Review

Accounting Basics Questions & Answers

  Calculate the expected value of action

Product introduction expected value. An analyst for the company in Exercise 16 thinks the probabilities of high, moderate, and low sales are 0.2, 0.5, and 0.3, respectively. In this case calculate the expected value of each action. Which is the be..

  What is the total amount of interest expense

Irving Inc. sold bonds with a $50,000, 10% interest, and 10-year term at $52,000. What is the total amount of interest expense over the life of the bonds

  ACCT304 Intermediate Accounting Assignment

ACCT304 Intermediate Accounting Assignment Help and Solution, DeVry University, USA. Compute the total cash interest payments in 2018 for these notes

  What economy-wide economic conditions

The US treasury isn't the only issuer of bonds. Corporations also issue bonds that have future payment structures like U.S. Treasuries

  On nov 1 2010 banana corporation management decided to

on nov. 1 2010 banana corporation management decided to discontinue operation of its rocketeer division and approved a

  Linear and nonlinear cost function

What is the difference between linear and nonlinear cost function? Give an example of each type of cost function?

  What amount of income should Peter report

Peter, a 25% partner in Gold & Stein Partnership, What amount of income should Peter report from Gold & Stein Partnership on his current-year tax return

  Determine a key difference between a fee-for-service plan

Determine a key difference between a fee-for-service plan and an episode of care payment plan, and indicate the plan that you believe to be most advantageous.

  You are the accountant for a division of a company that is

you are the accountant for a division of a company that is constructing a building for its own use. it is january 2011

  What is level of inventory

Flying Penguins Corp. has total current assets of $11,845,175, current liabilities of $5,311,020, and a quick ratio of .89. What is its level of inventory?

  Determine the amount of intra-entity profit at the end

Determine the amount of intra-entity profit at the end of 20X1.

  Prepare summary journal entries to record the months sales

selected balance sheet information for the wolf company at november 30 and december 31 2013 is presented below. the

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