Question: I need help with the journal entry to initially record the lease. It should be based upon the NET METHOD and based on ASC 840

I need help with the journal entry to initially record the lease. It should be based upon the NET METHOD and based on ASC 840. The lease for the bulldozer is for 10 years, the economic life is 15 years. Annual lease payments are $16,000 due at the end of each year. The residential value of the bulldozer is $24,000 at the end of the lease term with no residual value guarantee. The lease doesnt transfer ownership or provide an option to purchase. The bulldozer cost $100,000 should the customer want to purchase it outright. The implicit rate is 6.93% assuming the fair value of the bulldozer is $125,000 at the beginning of the term and 5.45% assuming a fair value of $135,000.

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!

From the case study, create an argument for the use of principles-based accounting for leases over rules-based accounting under GAAP, based on the financial statement restatements in the restaurant...

Fromthecasestudy: 1)CreateanargumentfortheuseofprinciplesbasedaccountingforleasesoverrulesbasedaccountingunderGAAP,basedonthefinancialstatement...

The scribes of ancient Egypt were the forerunners of today's accountants. a. True b. False Possible Exam 1 Questions Chapter 1: 3. The scribes of ancient Egypt were the forerunners of today's...

Select any two of the International Accounting Standards presented this week and discuss how your MNC hands the two standards you selected. Post your response in this week?s forum so that everyone...

could you help me in calculate profit and lost statement and income tax expenses (Australian Tax ) according to this form: 5. Income tax expense (a) Income tax expense Current tax (b) Numerical...

Myob software required Note: background information at the bottom (starting form page 10) PART 1: Self-Reection 10 Marks do this rt last This reflection asks students to attend to the following two...

Hi! I just need F and H answered, the rest of the photos are information given to help us solve the problems. Thank you in advance. Is the difference material in any year? f. Note 10 reports that...

Based on the following information: Create an amortization Schedule using the follow format: Amortization schedul Research case 15-1 - Excel Data Review View Tell me what you w 5 : File Home Insert...

page 1 page 2 page 3 page 4 page 5 page 6 page 7 Question: Given the information in case Exhibit 3, What accounting entry was possibly made by Facebook to record the Whatsapp acquisition? (Hint:...

Explain the differences (if any) between the words/ phrases in each set. You may also include additional information from an authoritative source to supplement your explanation. After having...

Consider an ideal Stirling cycle using air as the working fluid. Air is at 400 K and 200 kPa at the beginning of the isothermal compression process, and heat is supplied to air from a source at 1800...

How should a caregiver handle a picky eater? a ) Use punishments. b ) Make special foods or meals. c ) Use rewards. d ) Continue to provide healthy food options.

Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations.Lita Lopez invested $ 6 9 , 0 0 0 cash and equipment valued at $ 3 7 ,...

Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay tuition directly to the school. WTI also offers training to groups in off-site locations....

I need Keith Dox tax summary

Complete Keith's tax return including all required schedules and forms using prince edward island as province, using the fillable forms package. Taxpayers Information Taxpayer #1 Name: Keith Dox...

Mastery Problem: Job Order Costing Purl of Great Price Company Maria Young is the sole stockholder of Purt of Great Price Company (POGP Company), which produces high-end knitted sweaters and sweater...

An in - person or online gathering of media representatives at which companies announce new information is called a _ _ _ _ _ _ _ _ . Question 1 0 options: A ) conversation marketing B ) press...

Self-confidence

The number of people commenting on the statement

3. Choose a social incident in your local area. (a) List three points that you believe are the cause of the social incident and develop a model that shows a linear relationship. (b) What is the...