Question
In: Accounting
On January 1, 2018, Winn Heat Transfer leased office space under a three year operating lease...
On January 1, 2018, Winn Heat Transfer leased office space under a three year operating lease agreement. The arrangement specified three annual rent payments of $102,000 each, beginning December 31, 2018, and at each December 31 through 2020. The lessor, HVAC Leasing calculates lease payments based on an annual interest rate of 8%. Winn also paid a $276,000 advance payment at the beginning of the lease in addition to the first $102,000 rent payment. With permission of the owner, Winn made structural modifications to the building before occupying the space at a cost of $378,000. The useful life of the building and the structural modifications were estimated to be 30 years with no residual value. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: Prepare the appropriate entries for Winn Heat Transfer from the beginning of the lease through the end of 2020. Winn’s fiscal year is the calendar year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to nearest whole dollars.)
Solutions
ekkarill92 answered 2 years agoRelated Solutions
On January 1, 2018, Winn Heat Transfer leased office space under a three year operating lease...
On January 1, 2018, Winn Heat Transfer leased office space under
a three year operating lease agreement. The arrangement specified
three annual rent payments of $75,000 each, beginning December 31,
2018, and at each December 31 through 2020. The lessor, HVAC
Leasing calculates lease payments based on an annual interest rate
of 7%. Winn also paid a $330,000 advance payment at the beginning
of the lease in addition to the first $75,000 rent payment. With
permission of the owner, Winn...
On January 1, 2018, Winn Heat Transfer leased office space under a three year operating lease...
On January 1, 2018, Winn Heat Transfer leased office space under
a three year operating lease agreement. The arrangement specified
three annual rent payments of $90,000 each, beginning December 31,
2018, and at each December 31 through 2020. The lessor, HVAC
Leasing calculates lease payments based on an annual interest rate
of 8%. Winn also paid a $300,000 advance payment at the beginning
of the lease in addition to the first $90,000 rent payment. With
permission of the owner, Winn...
On January 1, 2021, Winn Heat Transfer leased office space under a three-year operating lease agreement....
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 $66,000 each, beginning December 31,
2021, and at each December 31 through 2023. 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...
On January 1, 2021, Winn Heat Transfer leased office space under a three-year operating lease agreement....
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 $78,000 each, beginning December 31,
2021, and at each December 31 through 2023. The lessor, HVAC
Leasing calculates lease payments based on an annual interest rate
of 5%. Winn also paid a $225,000 advance payment at the beginning
of the lease. With permission of the owner, Winn made structural
modifications to the building before occupying the...
On January 1, 2021, Winn Heat Transfer leased office space under a three-year operating lease agreement....
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 $81,000 each, beginning December 31,
2021, and at each December 31 through 2023. The lessor, HVAC
Leasing calculates lease payments based on an annual interest rate
of 8%. Winn also paid a $252,000 advance payment at the beginning
of the lease. With permission of the owner, Winn made structural
modifications to the building before occupying the...
On January 1, 2021, Winn Heat Transfer leased office space under a three-year operating lease agreement....
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,
2021, and at each December 31 through 2023. The lessor, HVAC
Leasing calculates lease payments based on an annual interest rate
of 8%. Winn also paid a $204,000 advance payment at the beginning
of the lease. With permission of the owner, Winn made structural
modifications to the building before occupying the...
A. On January 1, 2021, Jack leased office space from Luna under a 20-year operating lease...
A. On January 1, 2021, Jack leased office space from Luna under
a 20-year operating lease agreement. Luna’s borrowing rate is 5%.
The lease calls for annual lease payments of $10,000 on January 1
of each year. Record all journal entries related to the lease for
2021, 2022, and 2023 for both Luna and Jack.
On January 1, 2018, entered into a three-year lease for new office space agreeing to lease...
On January 1, 2018, entered into a three-year lease for new
office space agreeing to lease payments of: $7,000 in 2018, $6,000
in 2019 and $5,000 in 2020. Payments are due on December 31 of each
year with the first payment being made on December 31, 2018. Harlon
is aware that the lessor used a 5% interest rate when calculating
lease payments. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of
$1 and PVAD of...
On January 1, 2018, entered into a three-year lease for new office space agreeing to lease...
On January 1, 2018, entered into a three-year lease for new
office space agreeing to lease payments of: $5,500 in 2018, $7,000
in 2019 and $8,500 in 2020. Payments are due on December 31 of each
year with the first payment being made on December 31, 2018. Harlon
is aware that the lessor used a 6% interest rate when calculating
lease payments. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of
$1 and PVAD of...
On January 1, 2018, Harlon Consulting entered into a three-year lease for new office space agreeing...
On January 1, 2018, Harlon Consulting entered into a three-year
lease for new office space agreeing to lease payments of: $5,000 in
2018, $6,000 in 2019 and $7,000 in 2020. Payments are due on
December 31 of each year with the first payment being made on
December 31, 2018. Harlon is aware that the lessor used a 5%
interest rate when calculating lease payments.
Required:
1. Prepare the appropriate entries for Harlon Consulting on
January 1, 2018 to record the...
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