What is the amount of interest revenue

Assignment Help Accounting Basics

Reference no: EM132784832

Problem 1: Pro Co. leased equipment from Helium Company on July 1, 2018 for an 8-year period expiring June 30, 2026. Equal payments under the lease are P600,000 and are due on July 1 of each year. The first payment was made on July 1, 2018. The rate of interest contemplated by Pro and Helium is 10%. The cash selling price of the equipment is P3,520,000 and the cost of the equipment on Helium's accounting records is P2,800,000. The lease is appropriately recorded as sales-type lease. What is the amount of interest revenue that Helium should record for the year ended December 31, 2018?

Reference no: EM132784832

Questions Cloud

How much is the current tax expense : For tax purposes, the depreciation for this machine is P600,000. The tax rate is 30% for 2019. How much is the current tax expense for 2019?

Calculate average length of stay for Okaloosa Osteopathic : Calculate average length of stay for Okaloosa Osteopathic Hospital, given the following data: Inpatient days = 19882 and Licensed beds = 23

What is the total financial revenue to be recognized : The present value of an ordinary annuity of 1 at 11% for 10 years is 5.889. What is the total financial revenue to be recognized over the lease term?

What role does religion play in life : 1. "Religion is a private matter that does not belong in the workplace." Do you agree or disagree with this statement? Why or why not?

What is the amount of interest revenue : The lease is appropriately recorded as sales-type lease. What is the amount of interest revenue that Helium should record for the year ended December 31, 2018?

Write list of criteria which will help make the decision : A ship is quickly sinking and only six of the 12 people on board will fit into the one life boat. To determine which six will board the life boat:

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?

Methods for assigning costs to tasks : Consider methods for assigning costs to tasks and come up with the process that you would use to determine a budget.

What is the firm degree of financial leverage : The firm generated an operating profit of $5,470,511. The firm's interest expense was $2,873,151. What is the firm's degree of financial leverage

User Account

All Pages