What is the amount of profit on the sale

Assignment Help Accounting Basics
Reference no: EM133134498

Question 1 - Zorro Co. leased equipment from Porro Corp. on July 1, 2021 for an 8-year period expiring June 30, 2020. 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 2021. The rate of interest contemplated by Zorro and Porro is 12%. The cost of the equipment on Porro's accounting records is P2 800,000. The lease is appropriately recorded as a sales-type lease. What is the amount of profit on the sale and interest revenue that Porro should interest record for the year ended December 31, 2021?

Question 2 - Zorro Co. leased equipment from Porro Corp. on July 1, 2021 for an 8-year period expiring June 30, 2020. 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 2021. The rate of interest contemplated by Zorro and Porro is 10%. The cost of the equipment on Porro's accounting records is P2,800,000. The lease is appropriately recorded as a sales-type lease. What is the amount of profit on the sale and interest revenue that Porro should interest record for the year ended December 31, 2021?

Reference no: EM133134498

Questions Cloud

What is ding capital balance after closing income summary : Their capital balances are 40,000 and 60,000 respectively. Income Summary has debit balance of 20,000. What is Ding capital balance after closing Income Summary
Prediction for next week ice cream sales : Your marketing department estimates weekly sales of ice cream at your grocery stores using average temperature and advertising expenditures as explanatory varia
Subject of criticism among methodologists : Pre-test/post-test quantitative designs have been the subject of criticism among methodologists.
Autograph signing of marshawn lynch : Donna loves the Seahawks! She has a budget of $45 per month, which she can spend on Seahawks gadgetry at $5 a piece or on tickets to an autograph signing of Mar
What is the amount of profit on the sale : What is the amount of profit on the sale and interest revenue that Porro should interest record for the year ended December 31, 2021
About corporate social responsibility : Explain what is greenwashing. Explain how you would determine if a company is engaged in greenwashing.
Long-run guiding function of price : Distinguish between the short-run rationing function and the long-run guiding function of price
Printer actually cost the business : Given: Your boss has asked you to investigate purchasing a new printer. You have found a great deal on a machine for $3,500. Assume you will not depreciate the
How much is the net investment in the lease at december : Shane Company made the first payment on December 31, 2022. Sarma's implicit interest rate is 10%. How much is the net investment in the lease at December

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.

  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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd