Reference no: EM132493413
Question - Watson Co. entered into a lease arrangement for a truck on 1 April 2012 that had the following terms:
a) The lease payments are $13,500 per year, payable each 1 April for four years. The lease may be renewed at the option of the lessor for a further five years for $3,900 per year.
b) Based on an allocation of the lease payment on relative stand-alone prices, the lease and non-lease components (maintenance) are $12,200 and $1,300 respectively.
c) Expected amounts to be paid under the residual value guarantee is $14,000 at the end of the first lease term and $4,700 at the end of the second lease term.
d) The leased asset has a useful life of ten years and a fair value of $63,800. The interest rate implicit in the lease is 9%.
Required -
1-a. Calculate the right-of-use asset.
1-b. Record the initial journal entry.
2. Prepare lease liability amortization table for only the first four payments.
3. List the items that would appear in the lessee's SCI for the year ended 31 December 2013.
4. What is the amount of the total lease liability on the balance sheet on 31 December 2013? Split this amount into the current and long-term portions.
|
What is the amount of their child tax credit for dependents
: Tom and Darla are married and have three children, ages 5, 11, and 18 years old. What is the amount of their child tax credit/credit for other dependents
|
|
How might the given saying apply to this lesson
: Small mistakes are the steppingstones to large failures. How might this saying apply to this lesson, and do you agree? In your responses, provide an example.
|
|
Processes involved in software change management
: Describe the processes involved in software change management?
|
|
Developing a change plan for alaska airlines
: In your final project, you will be developing a change plan for Alaska Airlines. In order to begin developing this change plan, you will need to analyze.
|
|
What is the amount of the total lease liability
: What is the amount of the total lease liability on the balance sheet on 31 December 2013? Split this amount into the current and long-term portions
|
|
How do you open a file with an incorrect file extension
: How do you open a file with an incorrect file extension?
|
|
Element of the set that is closest to
: Given a set, weights, and an integer desired_weight, remove the element of the set that is closest to, but not greater than desired_weight
|
|
Understanding of big data
: Big Data: Describe your understanding of big data and give an example of how you've seen big data used either personally or professionally.
|
|
Discuss the major facts of the case
: Must be 4-5double-spaced pages of content (not counting title page, references, etc.) and discuss the major facts of the case, and you should tell whether.
|