Question
In: Accounting
PROBLEM 4 On Dec 31, 2018, Malton Corporation signed a five-year noncancelable lease for equipment from...
PROBLEM 4
On Dec 31, 2018, Malton Corporation signed a five-year noncancelable lease for equipment from Brampton. The terms of the lease called for Brampton to receive annual payments of $50,000 each Dec 31, beginning with Dec 31, 2018, for five years with the equipment going back to the lessor at the end of this period. The equipment has an estimated useful life of 5 years and no salvage value. Brampton accordingly accounts for this lease transaction as a sales type lease. The minimum lease payments were determined to have a present value of $208,493 at an effective interest rate of 10%. Brampton manufactured the equipment f0r $150,000.
- Prepare a lease amortization table for 12/31/18, 12/31/19 & 12/31/20.
- Record Brampton’s (Lessor) journal entries for 12/31/18 & 12/31/19.
SHOW ALL COMPUTATIONS.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
4.On Dec 31, 2018, Malton Corporation signed a five-year noncancelable lease for equipment from Brampton. The...
4.On Dec 31, 2018, Malton Corporation signed a five-year
noncancelable lease for equipment from Brampton. The terms of the
lease called for Malton to make annual payments of $50,000 each Dec
31, beginning with Dec 31, 2018, for five years with the equipment
going back to the lessor at the end of this period. The equipment
has an estimated useful life of 5 years and no salvage value.
Malton accordingly accounts for this lease transaction as a finance
lease. The...
On Dec 31, 2018, Malton Corporation signed a five-year noncancelable lease for equipment from Brampton. The...
On Dec 31, 2018, Malton Corporation signed a five-year
noncancelable lease for equipment from Brampton. The terms of the
lease called for Malton to make annual payments of $50,000 each Dec
31, beginning with Dec 31, 2018, for five years with the equipment
going back to the lessor at the end of this period. The equipment
has an estimated useful life of 5 years and no salvage value.
Malton accordingly accounts for this lease transaction as a finance
lease. The...
On Dec 31, 2018, Malton Corporation signed a five-year noncancelable lease for equipment from Brampton. The...
On Dec 31, 2018, Malton Corporation signed a five-year
noncancelable lease for equipment from Brampton. The terms of the
lease called for Brampton to receive annual payments of $50,000
each Dec 31, beginning with Dec 31, 2018, for five years with the
equipment going back to the lessor at the end of this period. The
equipment has an estimated useful life of 5 years and no salvage
value. Brampton accordingly accounts for this lease transaction as
a sales type lease....
On Dec 31, 2018, Malton Corporation signed a five-year noncancelable lease for equipment from Brampton. The...
On Dec 31, 2018, Malton Corporation signed a five-year
noncancelable lease for equipment from Brampton. The terms of the
lease called for Brampton to receive annual payments of $50,000
each Dec 31, beginning with Dec 31, 2018, for five years with the
equipment going back to the lessor at the end of this period. The
equipment has an estimated useful life of 5 years and no salvage
value. Brampton accordingly accounts for this lease transaction as
a sales type lease....
On Dec 31, 2018, Malton Corporation signed a five-year noncancelable lease for equipment from Brampton. The...
On Dec 31, 2018, Malton Corporation signed a five-year
noncancelable lease for equipment from Brampton. The terms of the
lease called for Brampton to receive annual payments of $50,000
each Dec 31, beginning with Dec 31, 2018, for five years with the
equipment going back to the lessor at the end of this period. The
equipment has an estimated useful life of 5 years and no salvage
value. Brampton accordingly accounts for this lease transaction as
a sales type lease....
On Dec 31, 2018, Malton Corporation signed a five-year noncancelable lease for equipment from Brampton. The...
On Dec 31, 2018, Malton Corporation signed a five-year
noncancelable lease for equipment from Brampton. The terms of the
lease called for Brampton to receive annual payments of $50,000
each Dec 31, beginning with Dec 31, 2018, for five years with the
equipment going back to the lessor at the end of this period. The
equipment has an estimated useful life of 5 years and no salvage
value. Brampton accordingly accounts for this lease transaction as
a sales type lease....
On January 1, Year 1, Dayden Company as lessee signed a five-year noncancelable equipment lease with...
On January 1, Year 1, Dayden Company as lessee signed a
five-year noncancelable equipment lease with annual payments of
$100,000 beginning December 31, Year 1. Dayden Company treated this
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present value of $379,000 at January 1, Year 1, based on interest
of 10%. What amount should Dayden Company report as interest
expense for the year ended December 31, Year 1?
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On Dec. 31, 2017, the Eastville City water department
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transferred title to the city after making seven payments of $
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payments is $90,250. Payments are to take place on December 31
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Required: Prepare journal entries for 2017 and 2018
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5-year noncancelable lease for a machine. the terms of the lease
called for bridgeport to make annual payments of $8,317 at the
beginning of each year, starting january 1, 2017. the machine has
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