What purposes after the lease payment would be

Assignment Help Accounting Basics
Reference no: EM132467861

Problem 1: On January 1, 2014, Pearson Company signed a lease agreement requiring six annual payments of $60,000, beginning December 31, 2014. The lease qualifies as a capital lease. Pearson's incremental borrowing rate was 9% and the lessor's implicit rate, known by Pearson, was 10%. The present value factors of an ordinary annuity of $1 for six periods for interest rates of 9% and 10% are 4.48592 and 4.35526, respectively.

Question 1: The balance of the lease obligation on January 1, 2015, for financial reporting purposes after the lease payment would be (round answers to the nearest dollar)

A. $ 0

B. $166.779

C. $227.448

D. $233,379

Reference no: EM132467861

Questions Cloud

Preconceived notions about a particular mental illness : PSY 3322 Abnormal Psychology - Explore some of your preconceived notions about a particular mental illness - many people assume those with schizophrenia cannot
What is amount of current portion of the lease obligation : What is the amount of current portion of the lease obligation Reynolda should report on the December 31, 2015, balance sheet?
What is the total amount of lease liability : What is the total amount of lease liability (including interest) Rhyme should report as of December 31, 2015?On January 1, 2014, Rhyme Co. leased equipment
What the interest expense for would be : What The interest expense for 2014 would be?On January 1, 2014, Pearson Company signed a lease agreement requiring six animal payments of $60,000, beginning Dec
What purposes after the lease payment would be : What balance of the lease obligation on January 1, 2015, for financial reporting purposes after the lease payment would be (round answers to the nearest dollar)
What is the amount of the lease obligation on december : Using a rate of 11%, Mark capitalized the lease on January 1, 2014, in the amount of $314,152. What is the amount of the lease obligation on December?
How is actual excess capacity reserve calculated : In the AIMS case, how is actual (current) excess capacity reserve calculated? The case states that this was at 10% in 1995 and has grown at 26%
Describe one penalty or standard or ethical concern : Describe one penalty, standard, or ethical concern that an individual taxpayer or a tax professional should be aware of that you did not know previously
Determine the method of costing the product : Determine the method of costing the product.A comparison of the selling prices using the current absorption costing method against an Activity Based Costing

Reviews

Write a Review

Accounting Basics Questions & Answers

  Assume the accruals apply to the current year

What is the percentage of the misstatement in (a) to the reported income of $1,001,000,000? Round to one decimal place.

  When should Surfing Hawaii Co record the sale

Suppose that with his purchase order, Aikan is required to make a down payment. Would that change your answer to part (a)?

  Explain why adjusting entries are necessary

Explain why adjusting entries are necessary. Describe the 4 types of adjusting entries and provide a manufacturing industry example of each

  Prepare the adjusting entry at December

Accounts Receivable $180,000 and Sales Revenue 875,000. Prepare the adjusting entry at December 31, 2017, to record bad debt expense

  Discuss what is the accounting rate of return

If the salvage value of the equipment is estimated to be $250,000, what is the accounting rate of return

  Discuss activity-based costing

Activity-Based Costing as an Alternative to Traditional Product Costing

  What is the total projected variable cost for december

What is the total projected variable cost for December? What is the projected unit fixed cost for December? What is projected unit variable cost for December?

  What is the purpose of comprehensive annual financial report

What is the purpose of a Comprehensive Annual Financial Report, or CAFR? What standards must a CAFR comply with? What statements comprise a CAFR

  An oven with a book value of 67000 has an estimated 5 year

an oven with a book value of 67000 has an estimated 5 year life. a proposal is offered to sell the oven for 8500 and

  Proper journal entry for each transaction

Proper journal entry for each transaction - $170,000 of materials was used in production, of this amount, $152,00 was used on specific jobs

  Provide an example for which the use of a batch processing

Provide an example for which the use of a batch processing system to handle transactions is appropriate. Provide an example for which the use of online transaction processing is appropriate.

  What were equivalent units of production for conversion cost

What were the equivalent units of production for conversion costs using process costing and FIFO method for March?

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