On January 1, 2024, Winn Heat Transfer leased office space under a three-year operating lesse agreement....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On January 1, 2024, Winn Heat Transfer leased office space under a three-year operating lesse agreement. The arrangement specified three annual lease payments of $66,000 each, beginning December 31, 2024, and on each December 31 through 2026. The lessor, HVAC Leasing, calculates lease payments based on an annual interest rate of 5% Winn also paid a $207,000 advance payment at the beginning of the lease. With permission of the owner, Winn made structural modifications to the building before occupying the space at a cost of $273,000. The useful life of the building and the structural modifications were estimated to be 30 years with no residual value. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Required: Prepare the appropriate entries for Winn Hest Transfer from the beginning of the lesse through the end of 2026. Winn's fiscal year is the calendar year. Note: If no entry is required for a transaction/event, select "No journal entry required" In the first account field. Round your answers to the nearest whole dollar. Answer is complete but not entirely correct. No Date 1 January 01, 2024 Right-of-use asset Lease payable 2 3 4 5 January 01, 2024 Lease payable Cash January 01, 2024 Leasehold improvements Cash December 31, 2024 Interest expense Lease payable Cash December 31, 2024 Amortization expense General Journal 00 00 00 000 Debit Credit 386,734 386,734 207,000 207,000 273,000 273,000 8,987 57,013 66,000 126,013 126,013 Right-of-use asset 6 December 31, 2024 Depreciation expense 91,000 Accumulated depreciation-leasehold improvement 91,000 7 December 31, 2021 Interest expense Lease payable Cash 000 6,136 59,864 66,000 8 December 31, 2021 Amortization expense Right-of-use asset 128,864 128,864 9 December 31, 2021 Depreciation expense 91,000 Accumulated depreciation-leasehold improvement 91,000 10 December 31, 2021 Interest expense 3,143 Lease payable Cash 62,857 66,000 11 December 31, 202 Amortization expense Right-of-use asset 12 December 31, 2021 Depreciation expense Accumulated depreciation-leasehold improvement > > 131,857 131,857 69,000* 69,000 On January 1, 2024, Winn Heat Transfer leased office space under a three-year operating lesse agreement. The arrangement specified three annual lease payments of $66,000 each, beginning December 31, 2024, and on each December 31 through 2026. The lessor, HVAC Leasing, calculates lease payments based on an annual interest rate of 5% Winn also paid a $207,000 advance payment at the beginning of the lease. With permission of the owner, Winn made structural modifications to the building before occupying the space at a cost of $273,000. The useful life of the building and the structural modifications were estimated to be 30 years with no residual value. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Required: Prepare the appropriate entries for Winn Hest Transfer from the beginning of the lesse through the end of 2026. Winn's fiscal year is the calendar year. Note: If no entry is required for a transaction/event, select "No journal entry required" In the first account field. Round your answers to the nearest whole dollar. Answer is complete but not entirely correct. No Date 1 January 01, 2024 Right-of-use asset Lease payable 2 3 4 5 January 01, 2024 Lease payable Cash January 01, 2024 Leasehold improvements Cash December 31, 2024 Interest expense Lease payable Cash December 31, 2024 Amortization expense General Journal 00 00 00 000 Debit Credit 386,734 386,734 207,000 207,000 273,000 273,000 8,987 57,013 66,000 126,013 126,013 Right-of-use asset 6 December 31, 2024 Depreciation expense 91,000 Accumulated depreciation-leasehold improvement 91,000 7 December 31, 2021 Interest expense Lease payable Cash 000 6,136 59,864 66,000 8 December 31, 2021 Amortization expense Right-of-use asset 128,864 128,864 9 December 31, 2021 Depreciation expense 91,000 Accumulated depreciation-leasehold improvement 91,000 10 December 31, 2021 Interest expense 3,143 Lease payable Cash 62,857 66,000 11 December 31, 202 Amortization expense Right-of-use asset 12 December 31, 2021 Depreciation expense Accumulated depreciation-leasehold improvement > > 131,857 131,857 69,000* 69,000
Expert Answer:
Related Book For
Posted Date:
Students also viewed these accounting questions
-
On January 1, 2021, Winn Heat Transfer leased office space under a three-year operating lease agreement. The arrangement specified three annual lease payments of $93,000 each, beginning December 31,...
-
On January 1, 2011, Winn Heat Transfer leased office space under a three-year operating lease agreement. The arrangement specified three annual rent payments of $80,000 each, beginning January 1,...
-
We can measure how good a center Kevin Bacon is by computing each performer's Hollywood number or average path length. The Hollywood number of Kevin Bacon is the average Bacon number of all the...
-
In chemistry, the pH of a substance is defined as pH = -log[H+] , Where H+ is the hydrogen ion concentration, in moles per liter find the pH of each substance. Substance Hydrogen ion Concentration a)...
-
A professor once suggested the "Big Mac" index was a useful way to calculate the purchasing price parity of currencies around the world.He noticed the following: Cost of a Big Mac Hamburger (BMH)in...
-
Analyze the tube-flow reactor data in Table B. 6 using all possible regressions. Evaluate the subset models using the \(R_{p}^{2}, C_{p}\), and \(M S_{\text {Res }}\) criteria. Justify your choice of...
-
Road Tire Corporation makes several lines of automobile and truck tires. The company operates in a competitive marketplace, so it relies heavily on cost data from its FIFO-based process costing...
-
Using the template proposed below, write a Matlab function fwkinrpp that implements the forward kinematics for the RPP manipulator pictured in Figure 3. function T fwkinrpp (q) end % q is a 3x1...
-
You are driving down a highway with a speed of 30.0 m/s, and exit down a 57.5 m long exit ramp with a deceleration (negative acceleration) of -2.5 m/s 2 . What is the car's velocity (in m/s) at the...
-
The torque (or moment) caused by a force F = (256 +325) N acting at position r = (-1.552 - 1.55 ) m relative to the axis of rotation (pivot) is 7 = F x F. Find the torque caused by F acting at...
-
Use the table to answer the questions below. SECTORS Output: Inputs: Com Wheat Fertilizer 42.3 Cows Beef Cheese Burgers Pizza Resources Rent Wages Profit Value Added Corn 133 Amt as Final Product...
-
Rina would like to update the digital portfolio to better highlight personal skills and abilities. Which of the following best emphasizes Alexis's skills? I have excellent communication skills and...
-
The typical distance between average - sized asteroids in the main asteroid belt is about a million km . . . Use the following values to calculate the force between two such asteroids: Mass of...
-
A 18-g bullet is fired into a 1100-g block of wood which is suspended as a ballistic pendulum. The combined mass swings up to a height of 6.8 cm above where it originally was. What was the kinetic...
-
Based on the concepts explored in the course so far, give your thoughts on Jesus teachings on the cost of being a true disciple. 1. What are the benefits? 2. What are the component costs (personal,...
-
Graph the following conic sections, labeling vertices, foci, directrices, and asymptotes (if they exist). Give the eccentricity of the curve. Use a graphing utility to check your work. 10 5 + 2 cos 0
-
A balloon is launched at sea level, where the air pressure is \(100 \mathrm{kPa}\). The helium has a volume of \(1000 \mathrm{~m}^{3}\) at this altitude. What is the volume of the helium when the...
-
A balloon is at a height of \(5.0 \mathrm{~km}\) and is descending at a constant rate. The buoyancy force is directed ; the drag force is directed A. Up, up B. Up, down C. Down, up D. Down, down...
-
A balloon is launched at sea level, where the air pressure is \(100 \mathrm{kPa}\). The density in the hot-air chamber is \(1.0 \mathrm{~kg} / \mathrm{m}^{3}\). What is the density of the air when...
Study smarter with the SolutionInn App