User Account

All Pages

Record the journal entry for any operating leases

Assignment Help Accounting Basics
Reference no: EM133034125

Question - Below are three lease transactions for VNN Airways in 20XX as the Lessee. All leases start on 1/1/XX. Lessors

 

BJN Leasing

CMN Leasing

BVC Leasing

Type of property

787 Aircraft

727 Aircraft

L-1011 Aircraft

Yearly rental

$7,445,064

$5,449,423

$2,851,861

Lease term

15 years

15 years

20 years

Estimated economic life

25 years

25 years

25 years

Fair market value of leased asset

$69,300,000

$54,000,000

$32,000,000

Present value of the rental payments

$63,000,000

$46,000,000

$28,000,000

Purchase price at end of lease

$15,000,000

$9,000,000

$7,000,000

Required -

1. Identify the three above leases as either operating or capital leases, and explain your answer.

2. Record the initial journal entry for any of the above that are capital leases.

3. Record the journal entry for any of the above that are operating leases.

Reference no: EM133034125

Questions Cloud

Explain the intermodal and multimodal transportation : What is the difference between intermodal and multimodal transportation? Please give an example.
Prepare an income statement down to the gross profit : The selling price is $5 per unit. A stock-take on 30 June revealed 7,700 units in inventory. Prepare an income statement down to the gross profit
Debate question on the weed business : The federal government should legalize marijuana and cleanse nonviolent cannabis offenders' federal records. Marijuana is a less harmful drug than alcohol
Various trends influencing workplace : As there is a current 2 senior customer service positions are still vacant. Senior customer service officers' key responsibilities are listed below:
Record the journal entry for any operating leases : Record the journal entry for any of the above that are operating leases. Record the initial journal entry for any of the above that are capital leases
Compare the delphi analysis to the pestel analysis : Students are to compare the Delphi analysis to the PESTEL analysis. By answering the following questions:
Ethical approaches in the twitter organization : 1. Use relevant theory Utilitarian to discuss the ethical approaches in the twitter's organization
Case study on angel company : Angel Company has 10% net profit margin on sales in previous years and expects to maintain the same next year.
Expansion of health services with telehealth : Identify the challenge within the context, current strategies and gaps and Provide informed summary and actionable steps to resolve the challenges

Reviews

Write a Review

Accounting Basics Questions & Answers

  Why do you think the Tata Nano strategy failed

What are the key differences in the strategic approach of the Tata Nano as compared with CitizenM Hotels? Why do you think the Tata Nano strategy failed

  Calculate eps and roe for year

Academy Driving School reported the following amounts in its financial statements: Calculate EPS and ROE for year 2

  Problem related to equity transactions

Corporation has the following capital structure at the beginning of the year: Prepare the entries for the two transactions below.

  Cbs companys manufacturing accounting system uses direct

cbs companys manufacturing accounting system uses direct labor costs to apply overhead to goods in process and finished

  Journalize the entry to record the write-off

Acropolis Company, a computer consulting firm, has decided to write off the $12,950 balance of an account owed by a customer, Aaron Guzman. Journalize the entry to record the write-off.

  The entry to sell 100 shares of 1 par value common stock

the entry to sell 100 shares of 1 par value common stock at 4 per share would include a debit paid-in capital in excess

  Would the accountant be dealing with a receivable

Payment on application - $0.50 per share. Would the accountant be dealing with a receivable (asset) or payable (liability) when finalising the forfeiture

  Prepare the Income Statement of the company

Question - You are given the following information of Julia Ltd and you are required to prepare the Income Statement of the company

  What amount of interest expense was reported

What amount of total liabilities was reported on the December 31, 2013, balance sheet?

  What journal entries would be made relative to given facts

Assuming that actual warranty costs are incurred exactly as estimated, what journal entries would be made relative to the following facts?

  Positive impact on economic growth

Does this fact affect the conclusion about whether the pre-reform or post-reform Scrooge had a more positive impact on economic growth? Briefly explain.

  How did trust contribute to mr amslongs fraud

If investors would have known Mr. Amslong's background and had access to other information about him, how would it have affected the fraud? Why?

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