(Answered) Question - lessor entries sales-type lease wadkins company

Accounting

Question - Lessor Entries, Sales-Type Lease

Wadkins Company, a machinery dealer, leased a machine to Romero Corporation on January 1, 2011. The lease is for an 8-year period and requires equal annual pay- ments of $38,514 at the beginning of each year. The first payment is received on January 1, 2011. Wadkins had purchased the machine during 2010 for $170,000. Collectibility of lease payments is reasonably pre- dictable, and no important uncertainties surround the amount of costs yet to be incurred by Wadkins. Wadkins set the annual rental to ensure an 11% rate of return. The machine has an economic life of 10 years with no residual value and reverts to Wadkins at the termination of the lease.

Instructions -

A) Compute the amount of the lease receivable.

B) Prepare all necessary journal entries for Wadkins for 2011.

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92581962
Price:- $25

Verified Expert

Priced at $50 Now at $25, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - explain legislation and statutory requirements

Question - Explain legislation and statutory requirements and industry codes of practice including(Australia): Consumer credit code Privacy act Credit act Financial transaction reports act Corporations act (including acc ...

Question - bob smith borrowed 200000 on january 1 2015 the

Question - Bob Smith borrowed $200,000 on January 1, 2015. The interest rate of 8% is compounded semiannually to be repaid January 1, 2025. To repay this Bob wants to start making five equal annual deposits into fund tha ...

Question - bridgeport company reports the following

Question - Bridgeport Company reports the following financial information before adjustments. Dr. Cr. Accounts Receivable $169,500 Allowance for Doubtful Accounts $2,060 Sales Revenue (all on credit) 841,800 Sales Return ...

Question using the readings about the differences between

Question: Using the readings about the differences between managers and leaders, and grounded in strategic planning, how can one take a leadership role in making yours a plan that works? The response must be typed, singl ...

Quesiton company general mills incfinancial ratios are used

Quesiton: Company: General Mills Inc Financial ratios are used to assess a company's strengths and weaknesses. One way to use ratios is to compare the company under consideration to the industry average. Deriving meaning ...

Question - post the following transactions into the

Question - Post the following transactions into the appropriate T accounts. Transactions: 1. Purchased office supplies for $6,000 in cash. 2. Delivered monthly statements; collected fee income of $52,000. 3. Paid the cur ...

Question - greg corp prepares its financial statements

Question - Greg Corp. Prepares its financial statements under U.S. GAAP Tina prepares its financial statements under IFRS. You have gained the following insights: Greg and Tina are the same company except they use differ ...

Question - you are saving for a porsche carrera cabriolet

Question - You are saving for a Porsche Carrera Cabriolet, which currently sells for nearly half a million dollars. Your plan is to deposit $15,000 at the end of each year for the next 10 years. You expect to earn 8 perc ...

Question my choice is starbucksaccess each of the social

Question: My choice is Starbucks Access each of the social media pages for the brand you have selected (Facebook, Twitter, Instagram, etc.). Provide an assessment of the effectiveness of the social media sites: number of ...

Question - buddy industries inc bii developed the following

Question - Buddy Industries, Inc., (BII) developed the following standard costs for direct material and direct labor for one of their major products, the 10-gallon plastic container. Standard quantity Standard price Di ...

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