Ask Question, Ask an Expert


Ask Accounting Basics Expert

Eastern purchased a machine for $500,000 and leased it to Injection, Inc. on January 1, 2013.

Lease description: Quarterly rental payments $32,629 - beginning of each quarter Lease term 5 years No residual, no BPO Economic life of machine 5 years Implicit interest and lessee's incremental borrowing rates 12% Fair value of asset $500,000
Collectibility of the rental payments is reasonably assured, and there are no lessor costs yet to be incurred. Depreciation is recorded at the end of each fiscal year (December 31).

Required: Prepare appropriate entries to record inception of the lease, first and second rental payments for a) Injection b) Eastern.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M939678

Have any Question? 

Related Questions in Accounting Basics

Salem company started its operations on january 1 2016 the

Salem Company started its operations on January 1, 2016. The following transactions took place during the first month of operations: Jan 1: Saleminvests $480,000 cash to start the business. Jan 5: Purchased furniture for ...

Are you agree or disagree regarding the paragraph on

Are you agree or disagree regarding the paragraph on payroll which is a part of auditing-Monetary compensation is a leading cause for the common practice of verifying total officers' compensation even when the tests of c ...

Accounting exercise1 your business sold 6000 in services

Accounting Exercise 1. Your business sold $6,000 in services this month. Your one employee who provided some of the service was paid $12.00 per hour and worked 80 hours during the month pius 7.62%Wpri Taxes. "Them were n ...

Nbspcomplete all requirements which are listed

COMPLETE ALL REQUIREMENTS WHICH ARE LISTED BELOW. REQUIREMENT #1: During its first month of operation, the View Corporation, a construction company which specializes in home remodeling,                                    ...

Your text notes that all of the business processes we have

Your text notes that all of the business processes we have studied feed data to the general ledger system. For each of the 5 business processes listed below: • Indicate which of the business events listed are activities ...

Horizontal and vertical analysisfor this assignment due in

Horizontal and Vertical analysis For this assignment, due in Module Four, you will submit both a horizontal and vertical analysis of Starbucks' accounts receivable, fixed assets, and debt financing. Use basic financial a ...

Question 1 - the transactions of gb bhd for the month of

QUESTION 1 - The transactions of GB Bhd for the month of December are as follows: Date  (December 2015) Transactions 1 Paid insurance premium of RM10,000 for coverage against losses due to fire for a period of 36 months. ...

Assignment ethical issue reclassification of

Assignment: Ethical Issue: Reclassification of Receivables Respond to the following ethical issue concerning the reclassification of receivables in your initial post: Moss Exports is having a bad year. Net income is only ...

Task- this assessment task consists of five

Task- This assessment task consists of five questions. Question 1 - Financial statement disclosures You are the financial accountant for Rainyday Ltd, and are in the process of preparing its financial statements for the ...

Nonfinancial performance measuresalpha university wishes to

Nonfinancial performance measures Alpha University wishes to monitor the efficiency and quality of its course registration process. a. Identify three input and three output measures for this process. b. Why would Alpha U ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate