Question: Lease A signed n operating contract with lesser B to lease a building for 10 Years. Annual lease payment is due on the end of

Lease A signed n operating contract with lesser B to lease a building for 10 Years. Annual lease payment is due on the end of year 31/12 December. $162745 increment borrowing rate of 10%. The present value of lease payment is $15m. The remaining economic years being 20 years and estimated fair value of the building is $2m .Write journal entries to record such transactions 

Company x issued $50000 at 12% debenture for 5 years at 94%. terms of issue include :repayment in installments at the end of every year.

Required: 

a)Discount on issue account 

b) appropriate installments for the respective years

3. Can I lower my tax liability?

4.How do I file my small business taxes?

5.What can cause the IRS to audit me?

6.How do I set product or service prices?

7.What are my sales tax responsibilities?

8.Where do I report profit?

9.Do I need to create invoices?

10.How double entry method works 

Step by Step Solution

3.48 Rating (151 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

1 Journal entries to record lease transactions a To record the lease liability Lease Liability 15000000 Lease Payment Liability 15000000 b To record the rightofuse asset RightofUse Asset 15000000 Leas... View full answer

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!