What type of lease is this to joey company

Assignment Help Accounting Basics
Reference no: EM131884693

Problem

Joey Co. leased equipment to Legoria Co. on April 1, 2017. The first of eight equal annual payments of $175,000 (excluding executory costs) was made on April 1, 2017. The Cost of the equipment to Joey Co. is $940,000. The Cash selling price is $1,026,900. Assume year end is 12/31.

Requirements:

1). What is Joey's desired rate of return on this lease?

2). What type of lease is this to Joey Co.?

3) Give the entry to record this lease on the books of Joey [4/1/17 to 4/1/2018] (Lease Amortization schedule should be prepared first)

4) How much income will Joey Co. recognize in 2017?

Reference no: EM131884693

Questions Cloud

What is ending balance of finished goods for adams company : Jobs 356, 357, 358, and 359 were completed. What is the ending balance of Finished Goods for Adams Company at the end of the first quarter?
Construct income statement and balance sheet : The 2013 balance sheet of the Captain Jet Inc. is attached. During 2014, the following events occurred.
What is the maximum amount you could receive : Calculate the minimum amount of USD that would be received if you exercise the option. What is the maximum amount you could receive?
What is the weight of the preferred stock : What is the weight of the preferred stock as it relates to the firm's weighted average cost of capital?
What type of lease is this to joey company : What is Joey's desired rate of return on this lease? What type of lease is this to Joey Company? How much income will Joey Co. recognize in 2017?
What is the breakeven stock price at expiration : You bought 1500 shares of a stock at $17 per share some time ago and have substantial profit built up as the present stock price is $32 per share.
How many round lots of stock were traded yesterday : What is the closing price at the end of the day before yesterday? How many round lots of stock were traded yesterday?
Give necessary entries for each event : During 2012 J & J made several treasury stock transactions. For each of the following give the entry(s) that J & J would have made. J & J uses the cost method.
Identify five stocks consistent with your strategy : Identify 5 stocks consistent with your strategy. Use Yahoo! Finance Stock Screener for this purpose.

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is crain predetermined overhead rate

What is Crain's predetermined overhead rate? Was overhead overapplied or underapplied for the year'. By how much

  You have just fallen in love with the perfect mate

Assuming a 10% interest rate, how much will you have to put in the bank at the end of each of the next ten years (2008-2017) so the son can withdraw $20,000 per year for six years starting January 1, 2018

  How many units should the company produce in a month

Santora can manufacture six toaster ovens per machine hour and four bread machines per machine hour. Which product and how many units should the company produce in a month to maximize profits

  Identify the basic principles of cash management

Hank Cook is confused about the lack of agreement between the cash balance per books and the balance per bank.

  Presented below is a condensed version of the comparative

presented below is a condensed version of the comparative balance sheets for sondergaard corporation for the last two

  Josh sold a piece of business equipment that had an

josh sold a piece of business equipment that had an adjusted basis to him of 50000. in return for the equipment josh

  Larsen corporation reported 100000 in revenues in its 2010

larsen corporation reported 100000 in revenues in its 2010 financial statements of which 44000 will not be included in

  Completing the accounting cycle from adjusted trial balance

Completing the accounting cycle from adjusted trial balance to post-closing trial balance with an optional worksheet Start from the posted T-accounts.

  What are the dividends

Total assets will exceed total liabilities and stockholders' equity by $16,000. This is because stockholders' equity (retained earnings) was decreased.

  Te accucheck plan costs 126 a month plus 8 cents per

a bank offers two checking plans. the anywhere plan charges 15 cents per check. the accucheck plan costs 1.26 a

  Determine the proceeds of the note

Determine the proceeds of the note, assuming the note carries an interest rate of 9%

  Distinguishing between operating and non operating items

What is the basis for distinguishing between operating and non-operating items?

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