User Account

All Pages

Show how interest would be allocated over the lease period

Assignment Help Accounting Basics
Reference no: EM132032385

Question - B Ltd entered into a lease agreement with D Ltd for the purpose of leasing an item of plant. The following terms are relevant.

The fair value of the plant was $10,000 and had an estimated useful life of 6 years but ownership was to remain with D Ltd, the lessor, at the end of the lease period.

The lease period was for 5 years commencing 1 January 2004.

The annual lease rentals that were payable on 31 December amounted to $2,571

Required - Show how interest would be allocated over the lease period using the sum actuarial (given an implicit interest rate) method. The implicit interest rate is 9%.

Reference no: EM132032385

Questions Cloud

What price will the bonds issue : The market interest rate for bonds of similar risk and maturity is 6%. Interest is paid semiannually. What price will the bonds issue
Determine the rate for application of factory overhead : Determine the rate for application of factory overhead to work in process at each level of volume in relation to both units and direct labor hours
Prepare the journal entries to record this transaction : On March 4, 2018, Carpenter Co. receives payment of $6,200 in full from Megan Gray. Prepare the journal entries to record this transaction
How much of the distribution is a dividend : Yoen, Inc. has an accumulated deficit of $15,000. This year it distributes $20,000 to its shareholders. How much of the distribution is a dividend
Show how interest would be allocated over the lease period : Show how interest would be allocated over the lease period using the sum actuarial (given an implicit interest rate) method. The implicit interest rate is 9%
Briefly explain the purpose of the confidentiality principle : Briefly explain the purpose of the confidentiality principle. Why is it important to ensure client of confidentiality of information
Evaluate the strengths of preview control environment : Preview, a diversified manufacturer, has five divisions that operate throughout Malaysia. Evaluate the strengths and weaknesses of Preview's control environment
Prepare the journal entries to record the mortgage loan : The terms provide for semiannual installment payments of $17,769 on June 30 and December 31. Prepare the journal entries to record the mortgage loan
What is the balance of depreciation on brenda bar : Brenda's gross plant and equipment has a book value of $19.5 million. What is the balance of depreciation on Brenda's Bar and Grill's balance sheet

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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