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
transaction as a capital lease. The five lease payments have a
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?
On Dec. 31, 2017, the Eastville City water department leased equipment under a noncancelable lease agreement...
On Dec. 31, 2017, the Eastville City water department
leased equipment under a noncancelable lease agreement that
transferred title to the city after making seven payments of $
15,250. The present value (6% interest) of the minimum lease
payments is $90,250. Payments are to take place on December 31
beginning in 2017.
Required: Prepare journal entries for 2017 and 2018
assuming the estimated useful life of the equipment is 10
years.
(B) Big City provides a defined benefit pension plan...
On January 1, 2017, Cullumber Corporation signed a 5-year noncancelable lease for a machine. The terms...
On January 1, 2017, Cullumber Corporation signed a 5-year
noncancelable lease for a machine. The terms of the lease called
for Cullumber to make annual payments of $8,200 at the beginning of
each year, starting January 1, 2017. The machine has an estimated
useful life of 6 years and a $5,500 unguaranteed residual value.
The machine reverts back to the lessor at the end of the lease
term. Cullumber uses the straight-line method of depreciation for
all of its plant...
On january 1, 2017, bridgeport corporation signed a 5-year noncancelable lease for a machine. the terms...
On january 1, 2017, bridgeport corporation signed a
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
an estimated useful life of 6 years and a $5,300 unguaranteed
residual value. the machine reverts back to the lessor at the end
of the lease term. bridgeport uses the straight-line method of
depreciation for all of its plant...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- "Ethical Considerations" Please respond to the following: Reflect upon the responsibilities placed on auditors by the...
- A Japanese company has a bond outstanding that sells for 93 percent of its ¥100,000 par...
- What is the difference among the principles of modularization, abstraction, encapsulation, and separation of interface and...
- An investment project costs $20,100 and has annual cash flows of $4,400 for six years. ...
- PUT IN JAVA PROGRAMMING The StockB class: Design a class named StockB that contains the following...
- Draw a DFA for the following ( ∑ = {0,1}): Set of all strings with.
- In the article from Forbes notes that the goal of a leader is not to clone...
ADVERTISEMENT