Question
In: Accounting
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.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
ALL LEASES BELOW ARE BETWEEN LUNA AND JACK A. On January 1, 2021, Jack leased office...
ALL LEASES BELOW ARE BETWEEN LUNA AND JACK
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.
B. On January 1, 2021, Jack leased a catnip processing factory
for a 4-year period ending December...
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...
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...
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, Taco King leased retail space from Fogelman Properties. The 10-year finance lease...
On January 1, 2021, Taco King leased retail space from Fogelman
Properties. The 10-year finance lease requires quarterly variable
lease payments equal to 2% of Taco King’s sales revenue, with a
quarterly sales minimum of $490,000. Payments at the beginning of
each quarter are based on previous quarter sales. During the
previous 5-year period, Taco King has generated quarterly sales of
over $695,000. Fogelman’s interest rate, known by Taco King, was
8%. (FV of $1, PV of $1, FVA of...
At January 1, 2021, Café Med leased restaurant equipment from Crescent Corporation under a nine-year lease...
At January 1, 2021, Café Med leased restaurant equipment from
Crescent Corporation under a nine-year lease agreement. The lease
agreement specifies annual payments of $25,000 beginning January 1,
2021, the beginning of the lease, and at each December 31
thereafter through 2028. The equipment was acquired recently by
Crescent at a cost of $180,000 (its fair value) and was expected to
have a useful life of 13 years with no salvage value at the end of
its life. (Because the...
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