Business, 29.05.2021 01:00 hemriccaleb5340

Morgan Leasing Company signs an agreement on January 1, 2020, to lease equipment to Cole Company. The following information relates to this agreement. 1. The term of the non-cancelable lease is 6 years with no renewal option. The equipment has an estimated economic life of 6 years. 2. The cost of the asset to the lessor is $245,000. The fair value of the asset at January 1, 2020, is $245,000. 3. The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $24,335, none of which is guaranteed. 4. The agreement requires equal annual rental payments, beginning on January 1, 2020. 5. Collectibility of the lease payments by Morgan is probable. Instructions (Round all numbers to the nearest cent.) a. Assuming the lessor desires an 8% rate of return on its investment, calculate the amount of the annual rental payment required. (Round to the nearest dollar.) b. Prepare an amortization schedule that is suitable for the lessor for the lease term. c. Prepare all of the journal entries for the lessor for 2020 and 2021 to record the lease agreement, the receipt of lease payments, and the recognition of revenue. Assume the lessor's annual accounting period ends on December 31, and it does not use reversing entries.

Answers: 1

Show answers

Other questions on the subject: Business

Business, 22.06.2019 10:00, chancegodwin5

In a small group, members have taken on the task roles of information giver, critic/analyzer, and recorder, and the maintenance roles of gatekeeper and follower. they need to fulfill one more role. which of the following would be most effective for their group dynamics? a dominator b coordinator c opinion seeker d harmonizer

Answers: 1

continue

Business, 22.06.2019 19:30, kylierice1

Exercise 4-9presented below is information related to martinez corp. for the year 2017.net sales $1,399,500 write-off of inventory due to obsolescence $80,440cost of goods sold 788,200 depreciation expense omitted by accident in 2016 43,600selling expenses 65,800 casualty loss 53,900administrative expenses 53,500 cash dividends declared 43,300dividend revenue 22,100 retained earnings at december 31, 2016 1,042,400interest revenue 7,420 effective tax rate of 34% on all items exercise 4-9 presented below is information relateexercise 4-9 presented below is information relate prepare a multiple-step income statement for 2017. assume that 61,500 shares of common stock are outstanding. (round earnings per share to 2 decimal places, e. g. 1.49.)prepare a separate retained earnings statement for 2017. (list items that increase retained earnings first.)

Answers: 2

continue

Business, 22.06.2019 20:50, ineedhelpireallydo

Power plants that rely on coal increase the amount of sulfur dioxide that dissolves into the air, eventually increasing the acidity of precipitation. the higher acidity of rain and snow can damage forests by making it more difficult for plants to absorb minerals from the soil. the equations below provide information about the market demand and supply of electricity. there is a constant marginal external cost of $25 per unit of electricity. d: qd= 200 – 2ps: qs=p – 10what quantity of electricity satisfies allocative efficiency in this market? a. 60b. 70c. 50d. 43.3

Answers: 2

continue

Business, 22.06.2019 21:00, QueenMiah16

Sue peters is the controller at vroom, a car dealership. dale miller recently has been hired as the bookkeeper. dale wanted to attend a class in excel spreadsheets, so sue temporarily took over dale's duties, including overseeing a fund used for gas purchases before test drives. sue found a shortage in the fund and confronted dale when he returned to work. dale admitted that he occasionally uses the fund to pay for his own gas. sue estimated the shortage at $450. what should sue do?

Answers: 3

continue

You know the right answer?

Morgan Leasing Company signs an agreement on January 1, 2020, to lease equipment to Cole Company. Th...