Problemmanufacturers southern leased high-tech electronic, Ask an Expert

Accounting

Problem:

Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2013. Edison purchased the equipment from International Machines at a cost of $276,187. Both the lessee and the lessor elected the short-term lease option. Appropriate adjusting entries are made annually.

Related Information:

Lease term 1 years (4 quarterly periods)
Quarterly lease payments $30,000 at Jan. 1, 2013, and at Mar. 31, June 30, Sept. 30.
Economic life of asset 5 years
Interest rate charged by the lessor 8%

Required:

Question 1: Prepare appropriate entries for Manufacturers Southern from the commencement of the lease through December 31, 2013.

Question 2: Prepare appropriate entries for Edison Leasing from the commencement of the lease through December 31, 2013.

Note: Please provide step by step solution.

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91165926

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - walton computer services inc has been in

Question - Walton Computer Services, Inc. has been in business for six months. The following are basic operating data for that period: Month July Aug. Sept. Oct. Nov. Dec. Service hours 116 138 260 426 314 324 Revenue $ ...

Question this project paper is an individual assignmentthe

Question: This Project Paper is an individual assignment. The company you select for this Project Paper is up to you; however, it must be a publicly traded company whose financials are available on the internet. You will ...

Question - if you earned an income of 36500 in wages and

Question - If you earned an income of $36,500 in wages and other contractual income of $42,600 working under your own ABN, making a net profit of $38,500, what would be your total assessable income?

Accounting fundamentals assignment -financial statement

Accounting Fundamentals Assignment - Financial Statement Analysis - This assignment involves analysing the financial statements and other information relating to a number of Australian public companies. These companies a ...

Question - given2018 pretax accounting income 4000002018

Question - Given 2018 Pretax Accounting Income: $400,000 2018 Municipal Bond Interest Income Included in Pretax Accounting Income: $20,000 2018 Warranty Expense of $70,000 for Accounting Purposes 2018 Actual Warranty Cos ...

Question - us steel issues a 2000000 bond at 10 for 8 years

Question - US Steel issues a $2,000,000 bond at 10% for 8 years. The market interest rate is 9%. Be sure to use the time value of money tables, not the formulas; and round your answers to the nearest whole dollars. Quest ...

Question - at the beginning of the year management had

Question - At the beginning of the year, management had estimated that total manufacturing overhead would be $591,360 and had planned to apply overhead to jobs based on an estimated use 42,240 of machine hours. The actua ...

Question - examine and discuss how to use the balance

Question - Examine and discuss how to use the balance scorecard to improve financial performance of an organization. • What is the balance scorecard and how does it impact the strategic plan? • Discuss and describe the d ...

Question - legacy issues 325000 of 5 four-year bonds dated

Question - Legacy issues $325,000 of 5%, four-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. They are issued at $292,181 and their market rate is 8% at the issue date. Determ ...

Question - aa businesss lawyer charge 30 per your to meet

Question - AA business's lawyer charge $30 per your to meet with the board of directors. The business pays for the expense on the fifth of every month. By the end of the year, the board members and lawyer had met 51 hour ...

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