Alpha Company, a machinery dealer, leased a machine to Omega Corporation on January 1, 2020. The...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Alpha Company, a machinery dealer, leased a machine to Omega Corporation on January 1, 2020. The first payment is received on January 1, 2020. Collectability of lease payments by Alpha is probable. The machine has no residual value and reverts to Alpha at the termination of the lease. Information concerning the lease appears below. 2 B 4 6 -8 30 31 82 33 34 Lease term in years Annual payments at the beginning of each year Cost of purchasing machine during 2019 by Alpha Rate used by Alpha to set the annual rental payment Economic life of machine in years 35 36 37 30 $ $ (b) Prepare all necessary journal entries for Alpha for 2020. 35,004 160,000 Instructions: (a) Compute the amount of the lease receivable using Excel's present value function. 6% 10 Debit Credit Alpha Company, a machinery dealer, leased a machine to Omega Corporation on January 1, 2020. The first payment is received on January 1, 2020. Collectability of lease payments by Alpha is probable. The machine has no residual value and reverts to Alpha at the termination of the lease. Information concerning the lease appears below. 2 B 4 6 -8 30 31 82 33 34 Lease term in years Annual payments at the beginning of each year Cost of purchasing machine during 2019 by Alpha Rate used by Alpha to set the annual rental payment Economic life of machine in years 35 36 37 30 $ $ (b) Prepare all necessary journal entries for Alpha for 2020. 35,004 160,000 Instructions: (a) Compute the amount of the lease receivable using Excel's present value function. 6% 10 Debit Credit
Expert Answer:
Answer rating: 100% (QA)
a Computation of amount of lease receivable using excels present value function Rate used ... View the full answer
Related Book For
Intermediate Accounting IFRS
ISBN: 9781119607519
4th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
Students also viewed these accounting questions
-
Crosley Company, a machinery dealer, leased a machine to Dexter Corporation on January 1, 2022. The lease is for an 8-year period and requires equal annual payments of $35,004 at the beginning of...
-
ABC Company, a machinery dealer, leased a machine to Dexter Corporation on January 1, 2019. The lease is for an 9-year period and requires equal annual payments of $27,300 at the beginning of each...
-
On January 1, 2011, Lavery Corporation leased equipment to Flynn Corporation. Both Lavery and Flynn use private enterprise GAAP and have calendar year ends. The following information pertains to this...
-
Coffin Corporation appropriately uses the installment-sales method of accounting to recognize income in its financial statements. The following information is available for 2014 and 2015....
-
Eddies Galleria sells billiard tables. The company has the following purchases and sales for 2015. Eddie is worried about the companys financial performance. He has noticed an increase in the...
-
An antilapse clause provides that an insurance policy lapses if the insured does not pay a premium exactly on time. (True/False)
-
Using the result of Problem 12.9, find the assembled stiffness matrix of the truss and formulate the equilibrium equations if the vertical downward load applied at node 4 is \(5 \mathrm{kN}\). Data...
-
Peter Sutton owned a home that was subject to two mortgages, but his only source of income was a $1,080 monthly Social Security benefit. In an effort to reduce his mortgage payments, which exceeded...
-
What is the competition in the construction industry, how can companies compete?
-
Assume the standard deviation of the return on every stock is 40%, and the correlation coefficient between any two stocks is 0.2. The market is perfect and short-selling is not restricted. As for...
-
1. In regards to the perspective of a U.S. investor, which of the below statements is FALSE? Group of answer choices a.The cash flows of assets denominated in a foreign currency expose the investor...
-
Write a CenteredSquaresPrinter program that constructs a Rectangle object square representing a square with top-left corner (100, 100) and side length 200, prints its location by calling System.out....
-
Mean and standard deviation. Write a program that reads a set of floating-point data values. Choose an appropriate mechanism for prompting for the end of the data set. When all values have been read,...
-
Download the file airports.dat from https://openflights.org/data.html. Write a program that prompts the user for the name of a city and then reads the airport data file, printing the names of all...
-
Simulate a tally counter that can be used to admit a limited number of people. First, the limit is set with a call public void setLimit(int maximum) If the click button is clicked more often than the...
-
In the Java library, a color is specified by its red, green, and blue components between 0 and 255 (see Table 4 on page 57). Write a program BrighterDemo that constructs a Color object with red,...
-
5. A bond has a price of 101 (percent of par), its yield-to-maturity is 7%, and its modified duration is 8. Use the modified-duration to estimate the new price of the bond if yields a. increase by...
-
Conduct a VRIO analysis by ranking Husson University (in Maine) business school in terms of the following six dimensions relative to the top three rival schools. If you were the dean with a limited...
-
Brent SA owns equipment that cost 80,000 and has a useful life of 8 years with no residual value. On January 1, 2022, Brent leases the equipment to Havaci ASA for 1 year for one rental payment of...
-
Tan Ltd. issued HK$600,000,000 of 7% bonds on November 1, 2022, for HK$644,636,000. The bonds were dated November 1, 2022, and mature in 10 years, with interest payable each May 1 and November 1. The...
-
Kramer Co. has prepared the following pension worksheet (amounts in $). Unfortunately, several entries in the worksheet are not decipherable. The company has asked your assistance in completing both...
-
What is predictive analytics?
-
What are the two biggest challenges associated with using big data?
-
How are predictive analytics adding value in organizations?
Study smarter with the SolutionInn App