User Account

All Pages

What is the interest expense for the current year

Assignment Help Accounting Basics
Reference no: EM132847087

Question - At the beginning of the current year, Galilee Company leased a building from a lessor with the following pertinent information:

Annual rental payable at the end of each year P1,000,000

Initial direct cost paid 400,000

Lease incentive received 100,000

Leasehold improvement 200,000

Purchase option that is reasonably certain to be exercised 500,000

Lease term 5 years

Useful life of machinery 8 years

Implicit interest rate 10%

PV of an ordinary annuity of 1 at 10% for 5 periods 3.79

PV of 1 at 10% for 5 periods 0.62

Required -

1) What is the cost of the right of use asset?

2) What is the depreciation for the current year?

3) What is the interest expense for the current year?

4) What is the lease liability at yearend?

Reference no: EM132847087

Questions Cloud

Create the franking account with explanations : Create the franking account with explanations - 22-Feb-2020 Receipt of dividend from company outside the group, franked to 80% $280,000
How did ideas about civilization play a role in the colonial : How did ideas about "civilization" and "savagery" play a role in the colonial period and during the early history of the United States?
What is the NPV of the project : If you sell the canned air, you plan on selling each can for $2 and believe you can sell 1 million cans per year. What is the NPV of the project
How did reconstruction change and why : How did Reconstruction change and why? In what ways were the 4.5 million ex-slaves assisted by the constitutional amendments and the Freedmen's Bureau?
What is the interest expense for the current year : At the beginning of the current year, Purchase option that is reasonably certain to be exercised 500,000. What is the interest expense for the current year
Do think the current balance of power between the entities : Do you think the current balance of power between these entities is appropriately balanced, or is it imbalanced in one way or the other?
Describe what douglass meant : Describe what Douglass meant when he said that slavery was "injurious (harmful)" to the slaveholders - HOW was it harmful to slaveholders?
Compute the probability of x successes : Compute the probability of x successes in the n independent trials of the experiment.
Define jeffersonian democracy : What were some of the issued that the United States had to deal with under the Articles of confederation? How did the Articles fail to live up to the needs?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Recognition of revenue on long-term contract and entries

Young Tree Construction Company uses the percentage-of-completion method of accounting. In 2014, Young Tree began work under a contract with a contract price of $1,500,000. Other details follow:

  What role does aicpa have in setting standards in industry

What role does the American Institute of Certified Public Accountants (AICPA) play in your accounting career as a student and when you join the profession?

  Which method yields the highest net income

Lopez Co. reported the following current-year data for its only product. The company uses a periodic inventory system, and its ending inventory consists of 300.

  Accounts receivable-bad debt journal entries

Prepare example journal entries to account for transactions related to accounts receivable and bad debt using both percentage of sales and the percentage of receivables methods.

  What circumstances might such a request violate the FCPA

Assume a U.S. company operates overseas and is approached by a foreign government's officials, Under what circumstances might such a request violate the FCPA

  How thee taxable income is determined in the philippines

How the taxable income is determined in the Philippines? Purely business or professional income earner. / Purely compensation earner

  How much of Steve disability payments are reported

Steve received $1,350 per month from disability (for 12 months). How much of Steve's disability payments are reported as taxable income

  Sale of investment on income statement

During 2011, Doane earned $200,000 and paid dividends of $60,000 on April 1 and $60,000 on October 1. On July 1, 2011, Rich sold half of its stock in Doane for $264,000 cash. What should be the gain on sale of this investment in Rich's 2011 income ..

  Amy smith is a student who plans to attend approximately

amy smith is a student who plans to attend approximately four professional events a year at her college. each event

  The interest is paid annually

What will the price of this bond be if the interest is paid annually?

  What amount would be reported as the total payroll costs

Assuming Lightning Electronics must also pay $340 of unemployment taxes for this pay period, what amount would be reported as the total payroll costs

  Treasury stock transactions-presentation-jodz company

Jodz Company had the following stockholders' equity as of January 1, 2004. Prepare the journal entries to record the treasury stock transactions in 2004, assuming Jodz uses the cost method.

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