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In: Accounting
Host Co as a lessee records a finance lease of machinery on 1/1/19. The 7 annual...
Host Co as a lessee records a finance lease of machinery on 1/1/19. The 7 annual lease payments of $210,000 are made at the end of each year. The present value of the lease payments at 10% is $1,022,400.
Prepare a lease amortization schedule from 1/1/19 to 12/31/21.
Prepare the journal entries for Host from 1/1/19 to 12/31/20.
SHOW ALL COMPUTATIONS.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Host Co as a lessor records a sales type lease of machinery on 1/1/19. The 7...
Host Co as a lessor records a sales type lease of machinery on
1/1/19. The 7 annual lease payments of $210,000 are received at the
end of each year. The present value of the lease payments at 10% is
$1,022,400.
Prepare a lease amortization schedule from 1/1/19 to
12/31/21.
Prepare the journal entries for Host from 1/1/19 to
12/31/20.
SHOW ALL COMPUTATIONS.
Host Co as a lessor records a sales type lease of machinery on 1/1/19. The 7...
Host Co as a lessor records a sales
type lease of machinery on 1/1/19. The 7 annual lease payments of
$210,000 are received at the end of each year. The present value of
the lease payments at 10% is $1,022,400.
Prepare a lease amortization schedule from 1/1/19 to
12/31/21.
Prepare the journal entries for Host from 1/1/19 to
12/31/20.
SHOW ALL COMPUTATIONS.
**This ia for a lessor not lessee.
Huffy Co., a lessee, records a finance lease of machinery on January 1, 2020. The five...
Huffy Co., a lessee, records a finance lease of machinery on
January 1, 2020. The five annual lease payments of $525,000 are
made at the beginning of each year. The present value of the lease
payments at 10% is $2,189,180. Huffy uses straight-line
depreciation with no salvage value.
Prepare an amortization table for the life of the lease. Round
all amounts to the nearest dollar.
Amortization Table
Lease Liability
Lease payment
Interest
Principal
2020
2021
2022
2023
2024
b. Prepare...
Question 21 Wildhorse Co. as lessee records a finance lease of machinery on January 1, 2021....
Question 21
Wildhorse Co. as lessee records a finance lease of machinery on
January 1, 2021. The seven annual lease payments of $750,000 are
made at the end of each year. The present value of the lease
payments at 10% is $3,651,000. Wildhorse uses the
effective-interest method of amortization and
sum-of-the-years'-digits depreciation (no residual
value).
Prepare an amortization table for 20121 and 2022.
Wildhorse Co.
Lease Amortization Schedule
Date
Annual Lease
Receipt/Payment
Interest on
Receivable/Liability
Reduction in
Receivable/Liability
Lease
Receivable/Liability...
Hughey Co. as lessee records a three-year lease of machinery with guaranteed residual value on January...
Hughey Co. as lessee records a three-year lease of machinery
with guaranteed residual value on January 1, 2011. The annual lease
payments of $350,000 are made at the end of each year. The total
present value of the annual lease payments at 10% is $870,398. The
guaranteed residual value at the end of the lease term is $100,000
and Hughey Co. expects the leased machinery to have an actual
residual value of 80,000. The present value factor for a single...
Christopher Donegan Company as lessee records a capital lease of machinery on January 1, 2013. The...
Christopher Donegan Company as lessee records a capital lease of
machinery on January 1, 2013. The seven annual lease payments of
$525,000 are made at the end of each year. The present
value of the lease payments at 10% is
$2,556,000. Donegan uses the effective-interest method
of amortization and straight line depreciation (no residual
value).
Complete the following amortization table for the years 2013 to
2015.
Date
Interest
Lease Payment
Reduction of Liability
Lease Liability
1/1/13
$2,556,000
12/31/13
12/31/14
12/31/15
Prepare all of...
Answer this question for a lease accounted for as a finance lease by lessee, and STL...
Answer this question for a lease accounted for as a
finance lease by lessee, and STL (sales type
lease) by lessor.
a) At a signing, only the lessee records a JE involving the
asset under lease
b) Both parties record two JEs each year of the lease term, not
counting the JE at signing
c) Both parties record only one JE each year of the lease term,
not counting the JE at signing
d) Bot parties amortize (depreciate) the asset...
A lessor and a lessee signed a lease agreement that qualifies as a finance/sales-type lease and...
A lessor and a lessee signed a lease agreement that qualifies as
a finance/sales-type lease and calls for annual lease payments of
$26,269 over a six-year lease term. The asset's estimated useful
life is also six years. The first payment is due on January 1st,
which is the beginning of the lease. The interest rate is 5%. Based
on these facts, the present value of the lease payments (which are
equal to the value of the asset to the lessor)...
A Lessee enters into a 3-year lease contract to lease a computer with annual lease payments...
A Lessee enters into a 3-year lease contract to lease a computer
with annual lease payments of $10,000 to be paid at the ending of
each year. Lessee's borrowing rate is 10%. Answer each question
independently. Assume a straight line depreciation method to
calculate depreciation expense.
Present value of an ordinary annuity of $1: PVF-OA (3,10%) =
2.48685
A) If this is classified as a capital lease, compute interest
expense and depreciation expense that the lessee should recognize
in the...
P21-8 (L02,4) (Lessee Computations and Entries, Finance Lease with Guaranteed Residual Value) data as in P21-7...
P21-8 (L02,4) (Lessee Computations and Entries, Finance Lease
with Guaranteed Residual Value)
data as in P21-7 and that Chambers Medical Center has an
incremental borrowing rate of 5% and an expected residual value at
the end of the lease of $10,000
21-7 information was as follows:
Amirante Inc. manufactures an X-ray machine with an estimated
life of 12 years and leases it to Chambers Medical Center for a
period of 10 years. The normal selling price of the machine is...
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