Elton Electronics leases testing equipment to Startup Corporation. The equipment is not specialized and is delivered on January 1, 2019. The fair value of the equipment is $90,000. The cost of the equipment to Elton is $85,000 and the expected life of the testing equipment is 8 years. The lease term for the equipment is 8 years, with the first payment due upon delivery, and seven subsequent annual payments beginning on December 31, 2019 and ending on December 31, 2025. Elton's implicit rate is 8% and they expect that collection of the eight payments of $14,500 payments is probable. Assume there are no initial direct costs with this lease. There are also no nonlease components.

The present value of the lease payments is $89,992.

1. Using the five Group I criteria, how will Elton classify this lease?
2. Prepare the journal entries for the lessor to record the commencement of the lease and receipt of the first payment on January 1, 2019.
3. Prepare an amortization table for Elton's net investment through December 31, 2021

   1. Date	Payment	Interest	Reduction in Principal	Balance
      Commencement
      1-Jan-19
      31-Dec-19
      31-Dec-20
      31-Dec-21

4. What is the journal entry for the lessor at the end of the first year on 12/31/19?

Assume that you have just been hired as a financial consultant to a startup company that plans to introduce a new beverage to the soft drink market. Your company’s product is advertised as a healthier alternative to soda and other artificially-flavored drinks. The all-natural sparkling beverage has only 25 calories, 5 grams of sugar, no chemicals or preservatives, and comes in four fruit flavors: orange, pineapple, apple, and grape.

Two years ago, the product was introduced in Florida. The phenomenal growth in sales since its introduction demonstrates that the product and its marketing possess tremendous potential. Accordingly, the company wants to explore possibly expanding sales of the product to the rest of the U.S. market.

Although the company has been highly profitable, the management group has little to no financial experience. Most decisions to date have been made on the basis of ‘does it feel right’ as opposed to rigorous, data-based financial analysis. The company has no system of financial oversight and the managers of the company have a limited understanding of sound management accounting practices.

You have been asked to provide the company with a general analysis of this proposed project. Your specific task is to produce a report discussing the following key aspects of this expansion project:

1) A microeconomic analysis of the current state of the soft drink market in the U.S. and how any recent developing trends may affect the demand for this product.

2) A macroeconomic analysis of the state of the U.S. economy and the impact this may have on the demand for this new product.

8. a) You run a startup that is looking to provide fitness and strength training based on the individual physique of the customers. The service is highly customised and the trainers will be working on a 1:1 basis with the customers. You have a team, a venue, the branding, and already about a dozen customers. However, you are still in need of £600,000 of seed funding to pay for the venue. Describe your fundraising strategy.

b) You have successfully raised the funds through angel investors. Now you are looking to scale your customer base with an anti-cyclical marketing budget. Describe your strategy.

a)Imagine that you are the Chief Financial Officer (CFO) of a startup airline company. The executive management team has tasked you with making a recommendation about whether the company should buy or lease airplanes. Analyze the major pros and cons for leasing and buying assets. Based on your analysis, provide a recommendation to the executive team.

b)Compare and contrast the three (3) methods for depreciating plant assets. Recommend the method that maximizes profits for both a shorter period of time and a longer period of time

***Use Websites to write in your own words"

No plagiarism

8. a) You run a startup that is looking to provide fitness and strength training based on the individual physique of the customers. The service is highly customised and the trainers will be working on a 1:1 basis with the customers. You have a team, a venue, the branding, and already about a dozen customers. However, you are still in need of £600,000 of seed funding to pay for the venue. Describe your fundraising strategy.

b) You have successfully raised the funds through angel investors. Now you are looking to scale your customer base with an anti-cyclical marketing budget. Describe your strategy.

XYZcom is a startup that builds high end BBQs for the consumer market. They commence operations (rather conveniently) on the first of July.

On the first of July they buy the equipment they need to produce their range of BBQs. The equipment they purchase is:

BBQ stamping machine for $220,000
BBQ Seam welder for $25,000
The effective life of the equipment is 10 years.

1) Create a table or other tool you can use as an asset register. Calculate the depreciation (diminishing value method) for the first year and include it in your asset register.

This equipment can be entered in the asset register using the ID numbers PR001 and PR002.

2)XYZcom pays $4,800 for 12 months insurance in July. Rather than recording the whole amount against July’s expenses, it wishes to show the expense equally across the periods for which it paid the premium. In other words, rather than showing a $4,800 expense for July it wishes to use prepayments to show a $400 expense in all months.Show the general journal transactions for July. The general journal transaction number is GL7, the insurance account is 6010, and the prepaid insurance 1945. The transaction is processed on the 31st July.

3) One of XYZcom’s account customers, JZ House and Garden, has gone broke, owing XYZcom $5,700. Prepare a worksheet showing the appropriate journal or ledger entries to write off the debt. Use the docket number JZ345, move the debt into bad debts in April and finalise the transactions on the 31st July. Before the write off, profit is 275,300.00. At the time of write off, theirs is the only receivable and afterwards the only bad debt.

4) XYZcom, being a startup, had a zero beginning inventory. They spent $425,000 on inventory items, receiving $12,000 for prompt payment and paying $10,000 for freight. Their closing inventory is $84,000. Determine the cost of goods sold and the closing entries for a periodic inventory.

5) Prepare a trial balance, an income statement and a balance sheet using your calculations.
You will need the following information:
Sales were $1,181,200.00
Administrative and sales expenses $225,000.00
Interest on debt is $97,000.00
At the end of the period, XYZcom has the following account balances:
Cash 550,000
Accounts receivable 117,000
Inventory 84,000
Prepaid expenses 4,800
Equipment 196,000
Depreciation 49,000
Accounts payable 125,000
Loans payable 361,300
Net Profit 465,500

I just need assistance with part 5. I need help with the trial balance, income statement and balance sheet.