Question: On September 30 2013 Ferguson Imports leased a warehouse Terms
On September 30, 2013, Ferguson Imports leased a warehouse. Terms of the lease require Ferguson to make 10 annual lease payments of $55,000 with the first payment due immediately. Accounting standards require the company to record a lease liability when recording this type of lease. Assuming an 8% interest rate, at what amount should Ferguson record the lease liability on September 30, 2013, before the first payment is made?
Answer to relevant QuestionsDetermine the combined present value as of December 31, 2013, of the following four payments to be received at the end of each of the designated years, assuming an annual interest rate of 8%.Payment Year ...On March 31, 2013, Southwest Gas leased equipment from a supplier and agreed to pay $200,000 annually for 20 years beginning March 31, 2014. Generally accepted accounting principles require that a liability be recorded for ...Harwell Company manufactures automobile tires. On July 15, 2013, the company sold 1,000 tires to the Nixon Car Company for $50 each. The terms of the sale were 2/10, n/30. Harwell uses the gross method of accounting for cash ...At January 1, 2013, NCI Industries, Inc. was indebted to First Federal Bank under a $240,000, 10% unsecured note. The note was signed January 1, 2011, and was due December 31, 2014. Annual interest was last paid on December ...At the beginning of 2013, a company adopts the dollar-value LIFO inventory method for its one inventory pool. The pool’s value on that date was $1,400,000. The 2013 ending inventory valued at year-end costs was $1,664,000 ...
Post your question