Prepare appropriate entries to record inception of the, Ask an Expert

Accounting

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.

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M939678

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - for this assessment you will need to complete a

Question - For this assessment, you will need to complete a Form 1040, Form 4562, Schedule C, and Schedule SE and submit them as file uploads. The PDF forms are available here and in the assessment instructions. Jayne Sm ...

Question - henry company manufactures two types of office

Question - Henry Company manufactures two types of office chairs, Model A and Model B. It estimates the following results for next year. Model A Model B Sales Revenue $450,000 $50,000 Variable Expenses (total): $140,00 ...

Question - wilson carver knives uses process costing in its

Question - Wilson Carver Knives uses process costing. In its Cutting Department, all the materials are added at the beginning of the process and conversion costs are added evenly during the processing. During the first m ...

Quesiton sue is working at a sports bar waiting on tables

Quesiton: Sue is working at a sports bar waiting on tables while attending college. She is currently enrolled as a sophomore in the school of business at State University majoring in human resource management. What are t ...

Question introduction you are a consultant hired by a

Question: Introduction: You are a consultant hired by a consumer products research company to analyze the packaging of various consumer products. Your first assignment is to go into a retail store and pick three products ...

Question - the following data pertain to last years

Question - The following data pertain to last year's operations at Tredder Corporation, a company that produces a single product: Units in beginning inventory 0 Units produced 20,000 Units sold 19,000 Selling price per u ...

Question - given the following data what is the value of

Question - Given the following data, what is the value of the gross profit as determined by the LIFO method? Sales revenue 300 units at $15 per unit Purchases 240 units at $10 per unit Beginning Inventory 120 units at $9 ...

Question - x companys profit equation next year is expected

Question - X Company's profit equation next year is expected to be 0.47R-$12,900, where R is total revenue. Assuming a tax rate of 36%, what must next year's revenue be in order for X Company to earn after-tax profits of ...

Question - the ap clerk of a company writes the checks for

Question - The A/P clerk of a company writes the checks for vendors, and the controller signs the checks. The A/P clerk has devised a plan to give herself a raise. She creates a new vendor for her friend's business and c ...

Question - grouper inc issues 2085900 of 9 bonds due in 12

Question - Grouper Inc. issues $2,085,900 of 9% bonds due in 12 years with interest payable at year-end. The current market rate of interest for bonds of similar risk is 10%. What amount will Grouper receive when it issu ...

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

Recent Questions

Ask Accounting Basics Expert