Question: Homework 1 of Chapter 15. Q1. Python Company leased equipment from Hope Leasing on January 1, 2020. Hope recently purchased the equipment at a cost

Homework 1 of Chapter 15. Q1. Python Company leased equipment from Hope Leasing on January 1, 2020. Hope recently purchased the equipment at a cost of $222,664. Other information: Lease term Annual payments Life of asset Fair value of asset Implicit interest rate Incremental rate 3 years $80,000 on January 1 each year 3 years $222,664 8% 8% There is no expected residual value. Required: 1) Show how Hope determined the $80,000 annual lease payments. Fair Value $ 222.10604 - Present Values 2) Prepare appropriate journal entries for Hope for 2020 and 2021. Round your answers to the nearest whole dollar amounts. Prepare an amortization schedule for Hope. Date Cash Payments Effective Interest Revenue Decrease in Balance Outstanding Balance (lease receivable) 222. lolo 1/1/2020 1/1/2020 12/31/2020 12/31/2021 gross lease investment 80.000 80.000 80.000 3) Prepare appropriate journal entries for Python for 2020 and 2021. Assume straight-line depreciation and a December 31 year-end. Round your answers to the nearest whole dollar amounts. Prepare an amortization schedule for Hope. Date Cash Effective Decrease in Outstanding Payments Interest Balance Balance (lease expense payable) 1/1/2020 1/1/2020 12/31/2020 12/31/2021 minimum lease investment

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Balke Laboratory began operations on July 1, 2017, and provides diagnostic services for physicians and medical clinics. The companys fiscal year ends on June 30, and the accounts are adjusted...

Python Company leased equipment from Hope Leasing on January 1 , 2 0 2 4 . Hope recently purchased the equipment at a cost of $ 2 2 2 , 6 6 4 . Other information: Lease term 3 years Annual payments $...

Python Company leased equipment from Hope Leasing on January 1 , 2 0 2 1 . Hope recently purchased the equipment at a cost of $ 2 4 7 , 7 1 4 . Other information: Lease term 3 yearsAnnual payments $...

Python Company leased equipment from Hope Leasing on January 1 , 2 0 2 4 . Hope recently purchased the equipment at a cost of $ 2 9 6 , 6 2 9 . \ table [ [ Other information:, 4 years ] , [ Lease...

Q1. Python Company leased equipment from Hope Leasing on January 1, 2020. Hope recently purchased the equipment at a cost of $222,664. Other information: Lease term 3 years Annual payments $80,000 on...

A company reports pretax accounting income of $10 million, but because of a single temporary difference, taxable income is $12 million. No temporary differences existed at the beginning of the year,...

Python Company leased equipment from Hope Leasing on January 1, 2016. Hope purchased the equipment at a cost of $222, 664. Other information: There is no expected residual value. Prepare appropriate...

Python Company leased equipment from Hope Leasing on January 1, 2021. Hope purchased the equipment at a cost of $234,385. Annual payments are $80,000, with the first payment on January 1, 2021. Other...

Python Company leased equipment from Hope Leasing on January 1, 2016. Hope purchased the equipment at a cost of $222, 666. There is no expected residual value. Required: Prepare appropriate journal...

Demand for phones at Amazon is 5,000 per month. The holding cost as Amazon is 25 percent and the company incurs a fixed cost of $500 for each order placed. The supplier offers a marginal unit...

Phi Delta Kappa (PDK) is an international professional organization for educators that, in collaboration with Gallup, has been conducting polls on the public's attitudes toward the public schools...

If the value of your house is $ 1 7 3 , 0 0 0 today and inflation is constant at 6 % annually what will be its value to the nearest thousand dollars in 5 years

Stephen Hemmerling was a driver for the Happy Cab Co. Hemmerling paid certain fixed expenses and abided by a variety of rules relating to the use of the cab, the hours that could be worked, and the...

From the ledger balances and additional data given, do the following for Cross Lumber for the year ended December 31, 201X. 1. Prepare the worksheet. 2. Prepare the income statement, statement of...

Suppose there is a federal excise tax on gasoline of 4.3 per gallon. A United States senator has proposed eliminating this tax, but requiring oil companies to pass all of the savings on to the...

Prepare a bank reconciliation from the following information: a. Balance per bank statement as of May 31, $16,655.44 b. Balance per books as of May 31, $12,091.94 c. Deposits in transit, $2,234.81 d....

Riverside Oil Company in eastern Kentucky produces regular and supreme gasoline. Each barrel of regular sells for $21 and must have an octane rating of at least 90. Each barrel of supreme sells for...

Management of MNE structure, learning, and innovation needs to take into account VRIO. True False

What are your thoughts on women showing cleavage at work? Should cleavage be covered or shown? Why? In your opinion, is a low neckline meant to be seductive, with intentional sexual innuendo?

Should religious people be given breaks and a special place to pray during their work time?

Clearly, women and minorities were held back from employment opportunities in the past. So shouldnt we give them special consideration today (like giving them jobs when they are qualified even though...