Spider co-leases a fleet of vehicles to Web Co. for 5 years. The annual lease payment, due

Fantastic news! We've Found the answer you've been seeking!

Question:

Spider co-leases a fleet of vehicles to Web Co. for 5 years. The annual lease payment, due at the beginning of the year is $75,000 and the rate implicit in the lease is 8%. Web Co. records leases under IFRS 16.?

Required

What is the initial journal entry to set up the lease on Web Co.'s books?

Related Book For answer-question

Intermediate Accounting

ISBN: 978-0077400163

6th edition

Authors: J. David Spiceland, James Sepe, Mark Nelson

See More Books

Posted Date: Feb 03, 2023 11:46 PM

See More Questions

Inception date July 1, 2017 Annual lease payment due at the beginning of each year, starting July 1, 2017 $21,27646 Purchase option price at end of lease term reasonably certain to be exercised by...
On January 1, 2018. JLOU Company leases a fleet of stock delivery vehicles from Dolt Motors, Inc. Under the terms of the lease, JLOU must pay $65,000 on January 1 of each year, beginning on January...
A construction company has a fleet of vehicles that are used by crews. The vehicles cost $35,000 each to purchase new and depreciate at a declining-balance rate of 30% per year. The vehicles have a...
An employee earns $22 per hour and 11/2 times that rate for all hours in excess of 40 hours per week. Assume that the employee worked 50 hours during the week, and that the gross pay prior to the...
In the early 1980s, new legislation allowed banks to pay interest on checking deposits, which they could not do previously. a. If we define money to include checking deposits, what effect did this...
a. Find all points where the following curves have vertical and horizontal tangent lines. b. Find the slope of the lines tangent to the curve at the origin (when relevant). c. Sketch the curve and...
Circuit Board Systems (CBS) has the following data: Assets: $\$ 100,000$; Profit margin: $6.0 \%$; Tax rate: $4.0 \%$; Debt ratio: $40.0 \%$; Interest rate: 8.0\%: Total assets turnover: 3.0. What is...
For fiscal year 2012, Katherines Department Store had net income of $4,000,000. Interest expense was $2,000,000, and the companys tax rate on income was 40 percent. Total assets were $76,000,000, and...
As a manager, Rick sometimes receives emails from the people who work under him that give responses that they think he'd like to hear rather than honest appraisals would be more helpful to him. This...
Joseph and Diane Smith 1580 West Street Chatham, VA 24531 Joseph and Diane are both 35 and have no dependents. If your clients receive a refund, they want the full amount refunded to them. Diane is...
Depreciation homework assignment Asset Date acquired Cost basis Computer 1/15/2019 1,500 Furniture 1/25/2019 5,000 Car 5/18/2019 12,000 Equipment 10/1/2019 19,000 Equipment 3/23/2020 10,000 Computer...
Suppose a host has a 1-MB file that is to be sent to another host. The file takes 1 second of CPU time to compress 50%, or 2 seconds to compress 60%. (a) Calculate the bandwidth at which each...
Roll a pair of dice 36 times, and draw a bar graph of the outcomes. a. Find the mean, the variance, and the standard deviation for this model. b. Repeat the experiment. c. Compare the results of...
Draw a scatter diagram and find $r$ for the data shown in each table in Problems 25-30. x 1 3 3 5 8 y 30 22 19 15 10
Use the formula in Example 1 to determine the sample size in Problems 5-14. The estimated prevalence is $25 \%$, and the desired confidence level is $98 \%$ with a margin of error of $3 \%$.
Suppose you were interested in knowing the mean score for a certain test in a mathematics class with 20 students. You sample four members of the class and find their test scores to be $52,56,96$,...
10. Suppose that an investor has 8 years investment horizon. The investor is considering a 20-year semi-annual coupon bond selling at par and having a coupon rate of 10%. The investor expectations...
Which of the following raises the credibility of areport? Which of the following raises the credibility of a report? Multiple Choice avoiding predictions avoiding the use of cause-effect statements...
Describe the approach BA uses to determine goodwill impairment losses. (Hint: see Note 19). How does this approach differ from U.S. GAAP?
Sometimes a business entity will change its method of accounting for certain items. The change may be classified as a change in accounting principle, a change in accounting estimate, or a change in...
If the adjusting journal entries prepared in BE 25 were not made, would net income be higher or lower and by how much? Prepare the necessary adjusting entries at December 31 for each of the items...
Net profit is calculated in the (A) Trading account (B) Profit and loss account (C) Trial balance (D) Statement of financial position
To find the value of closing inventory at the end of a period we (A) Do this by physically counting the inventory (i.e. stocktaking) (B) Look in the inventory account (C) Deduct opening inventory...
Gross profit is (A) Excess of sales over cost of goods sold (B) Sales less purchases (C) Cost of goods sold + opening inventory (D) Net profit less expenses of the period

Spider co-leases a fleet of vehicles to Web Co. for 5 years. The annual lease payment, due

Question:

Expert Answer:

Intermediate Accounting

Students also viewed these accounting questions