“A capital (or finance) lease results in both an asset and a liability on a company’s balance sheet.” Explain.
Answer to relevant QuestionsDiscuss which characteristics of a lease are evaluated in deciding whether it is a capital (or finance) lease.Indicate which of the following leases would be a capital (financing) lease and which would be an operating lease: 1. Rental of a warehouse for $10,000 per month, renewable annually. 2. Rental of a crane for $9,000 per month ...“When a company buys back bonds that it has issued, it always pays the book value to the bondholders. Therefore, there is never a gain or loss on extinguishing bonds.” Do you agree? Explain.Choi Company had total compensation expense for March of $40,000. The company paid $30,000 to employees during March, and it will pay the remainder in April. 1. Prepare the journal entry for recording the compensation ...Procter & Gamble Company’s (P&G) net sales in 2011 exceeded $82 billion. On its income statement, P&G reported the following earnings from continuing operations ($ in millions): Earnings before income taxes ...
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