Exercise 21-8 (Part Level Submission)
The following facts pertain to a noncancelable lease agreement between Windsor Leasing Company and Sheridan Company, a lessee.
Inception date:
May 1, 2017
Annual lease payment due at the beginning of
each year, beginning with May 1, 2017
$21,737.01
Bargain-purchase option price at end of lease term
$3,800
Lease term
5
years
Economic life of leased equipment
10
years
Lessor’s cost
$68,000
Fair value of asset at May 1, 2017
$93,000
Lessor’s implicit rate
10
%
Lessee’s incremental borrowing rate
10
%
The collectibility of the lease payments is reasonably predictable, and there are no important uncertainties surrounding the costs yet to be incurred by the lessor. The lessee assumes responsibility for all executory costs.
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(c)
Your answer is partially correct. Try again.
Prepare a lease amortization schedule for Sheridan Company for the 5-year lease term.
(Round present value factor calculations to 5 decimal places, e.g. 1.25125 and Round answers to 2 decimal places, e.g. 15.25.)
SHERIDAN COMPANY (Lessee)
Lease Amortization Schedule
Date
Annual Lease Payment Plus
BPO
Interest on
Liability
Reduction of Lease
Liability
Lease Liability
5/1/17
$
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
(To record depreciation.)
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
(To record interest.)
1/1/18
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
(To record second payament.)
Question 27
Pearl Corporation manufactures replicators. On January 1, 2017, it leased to Althaus Company a replicator that had cost $100,000 to manufacture. The lease agreement covers the 5-year useful life of the replicator and requires 5 equal annual rentals of $40,200 payable each January 1, beginning January 1, 2017. An interest rate of 12% is implicit in the lease agreement. Collectibility of the rentals is reasonably assured, and there are no important uncertainties concerning costs.
Prepare Pearl’s January 1, 2017, journal entries.
(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971
.
)
Click here to view factor tables
Date
Account Titles and Explanation
Debit
Credit
January 1, 2017
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
(To record the lease.)
January 1, 2017
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
(To record cost.)
January 1, 2017
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
(To record first lease payment.)
6 years ago
16.01.2017
8
Report Issue
Answer
(
0
)
Bids
(
0
)
other Questions
(
10
)
what can i bring to class that symbolizes growth and change
calculate it.
Noncancelable Lease Agreement DetailsTITLE Lease Amortization Schedule TemplateTITLE Journal Entries for 5-Year Equipment LeaseTITLE Human Resources Management Course Assignment TITLE Civil Engineering Steel Design ProblemTITLE 2-Page Environmental History Essay
1. Exercise 21-8 (Part Level Submission)
The following facts pertain to a noncancelable lease agreement
between Windsor Leasing Company and Sheridan Company, a
lessee.
Inception date:
May 1, 2017
Annual lease payment due at the beginning of
each year, beginning with May 1, 2017
$21,737.01
Bargain-purchase option price at end of lease term
$3,800
Lease term
5
years
Economic life of leased equipment
10
years
Lessor’s cost
$68,000
Fair value of asset at May 1, 2017
2. $93,000
Lessor’s implicit rate
10
%
Lessee’s incremental borrowing rate
10
%
The collectibility of the lease payments is reasonably
predictable, and there are no important uncertainties
surrounding the costs yet to be incurred by the lessor. The
lessee assumes responsibility for all executory costs.
Click here to view factor tables
(c)
Your answer is partially correct. Try again.
Prepare a lease amortization schedule for Sheridan Company for
the 5-year lease term.
(Round present value factor calculations to 5 decimal places,
e.g. 1.25125 and Round answers to 2 decimal places, e.g.
15.25.)
SHERIDAN COMPANY (Lessee)
Lease Amortization Schedule
Date
Annual Lease Payment Plus
BPO
Interest on
Liability
4. [removed]
[removed]
[removed]
[removed]
[removed]
(To record second payament.)
Question 27
Pearl Corporation manufactures replicators. On January 1, 2017,
it leased to Althaus Company a replicator that had cost
$100,000 to manufacture. The lease agreement covers the 5-year
useful life of the replicator and requires 5 equal annual rentals
of $40,200 payable each January 1, beginning January 1, 2017.
An interest rate of 12% is implicit in the lease agreement.
Collectibility of the rentals is reasonably assured, and there are
no important uncertainties concerning costs.
Prepare Pearl’s January 1, 2017, journal entries.
(Credit account titles are automatically indented when amount
is entered. Do not indent manually. If no entry is required,
select "No Entry" for the account titles and enter 0 for the
amounts. Round present value factor calculations to 5 decimal
places, e.g. 1.25124 and the final answer to 0 decimal places
e.g. 58,971
5. .
)
Click here to view factor tables
Date
Account Titles and Explanation
Debit
Credit
January 1, 2017
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
(To record the lease.)
January 1, 2017
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
(To record cost.)
January 1, 2017
[removed]
[removed]
[removed]
6. [removed]
[removed]
[removed]
(To record first lease payment.)
6 years ago
16.01.2017
8
Report Issue
Answer
(
0
)
Bids
(
0
)
other Questions
(
10
)
what can i bring to class that symbolizes growth and change
calculate its position function, its velocity function, and its
acceleration function
Can someone help me
Week 3 Project
Essay
write a persation speak, i already have the outline, just write
speak paper
homework
Environmental History 2pages.
Civil Engineering Steel design question
HSA320 WEEK 4 ASSIGNMENT 1 (A-PLUS WRITER ONLY)
final exam 422/acc
NOT RATED
FUTURE VALUE OF 1
7. TABLE
.
Contains the amounts to which 1 will accumulate if deposited
now at a specified rate and left for a specified number of
periods (Table 6.1).
Table
6.1
FUTURE VALUE OF …
6 years ago
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