User Account

All Pages

What is the unearned interest income on january

Assignment Help Accounting Basics
Reference no: EM132767070

An entity is a dealer in equipment. On January 1, 2020, an equipment is leased to another company with the the following provisions:

Annual rental payable at the end of each year 650,000
Lease term 5 years
Useful life of equipment 7 years
Cost of machinery 2,350,000
Initial direct cost paid by the lessor 50,000
Purchase option 250,000
Implicit interest rate 9%

  • It is reasonably certain that the lessee will exercise the purchase option at the end of the lease term.

Problem 1. What is the unearned interest income on January 1, 2020?

Problem 2. What is the gross income?

Problem 3. What is the carrying amount of the lease receivable on December 31, 2022?

Reference no: EM132767070

Questions Cloud

Internet outline security breach or cyberattack : Find an article on the internet outline a security breach or cyberattack.
What is the carrying amount of the lease receivable on dec : What is the current portion of lease receivable on December 31, 2020? What is the carrying amount of the lease receivable on December 31, 2023?
Define the various technologies that are emerging : Please review the article and define the various technologies that are emerging as noted in the article. Note how these emerging technologies are impacting.
What amount of loss on impairment of goodwill : A&B Corporation acquired Shoe Corp. on January 1, 2019 for $8,000,000, What amount of loss on impairment of goodwill should Gaylords record in 2019
What is the unearned interest income on january : What is the carrying amount of the lease receivable on December 31, 2022? What is the unearned interest income on January 1, 2020?
Consequences for company blue wood : What are the opportunities and consequences for the company Blue Wood if it does not change its approach to the business?
Asymmetric cryptography : Description of algorithms that implements asymmetric cryptography and strengths and weaknesses of each algorithm.
Identify the key provisions of relevant legislation standard : Identify the key provisions of relevant legislation standards and codes that may affect payroll operations.? Please ensure you address taxation legislation
What is emotional intelligence : What is Emotional Intelligence? What is your Emotional Intelligence? Were you surprised?

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