What would be the amount of the lease liability

Assignment Help Managerial Accounting
Reference no: EM133155322

Question - A lease agreement that qualifies as a finance lease calls for annual lease payments of $36,000 over a four-year lease term (also the asset's useful life), with the first payment at January 1, the beginning of the lease. The interest rate is 5%.

Required -

a. Complete the amortization schedule for the first two payments.

b. If the lessee's fiscal year is the calendar year, what would be the amount of the lease liability that the lessee would report in its balance sheet at the end of the first year? What would be the interest payable?

Reference no: EM133155322

Questions Cloud

Information about national governments-political environment : The Central Intelligence Agency provides up-to-date information about national governments and political environments. Click on the title above (it should take
Provides alternative to incarceration : Conduct an internet search for a juvenile program in your city or state that provides an alternative to incarceration.
Managing emerging risks for sports and entertainment : What are the two important steps in risk management process when it comes to managing emerging risks for sports and entertainment?
Field of criminal profiling hinder advancements : How do the contradiction and disagreement within the field of criminal profiling hinder advancements in this emerging field?
What would be the amount of the lease liability : If the lessee's fiscal year is the calendar year, what would be the amount of the lease liability that the lessee would report in its balance sheet
Identify some of the major existing competitors : Conduct a five-force analysis on the Australian mining industry based on your additional research. Specifically please undertake the following activities:
Why do you believe the growth in the number : Why do you believe the growth in the number, power and influence of CSOs has occurred?
Theory of international marketing : What is the relationship of the theory of international marketing and
Explain what capacity management is : 1. Explain what capacity management is and why it is strategically important. 2. Compare capacity planning in services to capacity planning in manufacturing.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  What the expected total sales for copiers were

The budget for the month was to sell 135 copiers at an average price of $2,400. What the expected total sales for 140 copiers were

  What is the market value of the firm

The founder of Alchemy Products Inc. discovered a way to turn gold into lead and patented this new technology. What is the market value of the firm

  Determine the total manufacturing costs incurred for year

Using the cost of direct materials used calculated in question four, determine the total manufacturing costs incurred for the year

  How is a swot analysis used in planning quality service

List five reasons why an establishment would initiate staff training to enhance customer service. How is a SWOT analysis used in planning quality service?

  What non financial measures could be used

In addition to the variances calculated above, what non financial measures could be used to evaluate the Customer Support Department?

  Prepare a CVP graph or a profit graph

Prepare a CVP graph or a profit graph for the store from zero pairs up to 4,000 pairs of sandals sold each year. Indicate the break-even point on your graph

  Which ollection from average receivables are

That is it's from the cash sales, advances from customers, collection from average receivables are?Are included in cash budget if these are received

  Find what is the margin of safety percentage

What is the margin of safety percentage? (Round your final answers to the nearest whole percentage (i.e, .12 should be entered as 12).)

  Show how much should deposit every month into account

Compute John is currently 25 years old. He has $10,000 saved up and wishes to deposit. How much should he deposit every month into his account?

  What is the minimum saving in annual operating costs

What is the minimum saving in annual operating costs that must be achieved in order for the president to consider buying the new machine

  Calculate the simple payback in years for each project

Ogopogo has alternate investments that earn 15%. Calculate the simple payback in years for each project. Ignore salvage values

  Find what amount should textron recognize as gross profit

Textron Inc., What amount should Textron recognize as gross profit (the profit element) for the December 31, 20X2, fiscal year?

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