Business, 06.11.2019 00:31 indiaholmes16
On january 1, 2018, maywood hydraulics leased drilling equipment from aqua leasing for a four-year period ending december 31, 2021, at which time possession of the leased asset will revert back to aqua. the equipment cost aqua $412,184 and has an expected economic life of five years. aqua expects the residual value at december 31, 2018, to be $50,000. negotiations led to maywood guaranteeing a $70,000 residual value.
equal payments under the lease are $100,000 and are due on december 31 of each year with the first payment being made on december 31, 2018. maywood is aware that aqua used a 5% interest rate when calculating lease payments.
required:
prepare the appropriate entries for maywood on january 1, 2018 and december 31, 2018, related to the lease.
Answers: 3
Business, 21.06.2019 16:00, fahaddakhil3186
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Business, 22.06.2019 19:10, EthanIsHyper
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Answers: 1
On january 1, 2018, maywood hydraulics leased drilling equipment from aqua leasing for a four-year p...
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