Hello I have an accounting quesiton.

Carla Vista Corp. agreed to lease property from Sunland Corp. effective January 1, 2020, for an annual payment of $25,592, beginning January 1, 2020. The property is made up of land with a fair value of $104,000 and a two-storey office building with a fair value of $170,000 and a useful life of 25 years with no residual value. The implicit interest rate is 9%, the lease term is 25 years, and title to the property will not be transferred to Carla Vista by the end of the lease term. Assume that there is also no bargain purchase option, but that the lease does meet other criteria to qualify as a capital lease. Both Carla Vista and Sunland use ASPE.

Prepare the required entries made by Carla Vista Corp. on January 1, 2020, and at its year end of December 31, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.)

Date

Account Titles and Explanation Debit Credit

( to record inception of lease)

(to record first lease payment on January 1)

(to record interest Dec 31)

( to record depreciation expense Dec 31)

Thank you

Question 4

On 1 January 2020, Lessee Ltd entered into a two-years lease with Lessor Ltd for a equipment. The contract contains an option to extend the lease term for a further a year. Lessee Ltd ascertained that it is reasonably certain to exercise this option. The equipment has a useful economic life of 10 years.

Lease payments are $25,000 per year for the initial term and $45,000 per year for the period when the option is exercised. All payments are due at the end of the year (i.e. 31 December). To obtain the lease, Lessee Ltd incurs initial direct costs of $12,500 on 1 January 2020. The interest rate within the lease is not readily determinable. Lessee Ltd s incremental rate of borrowing is 5%. Assume the initial direct cost was paid by Lessee Ltd to third party rather than to Lessor Ltd.

Required:
a. Calculate the initial carrying amount of the lease liability and the right-of-use asset

and prepare the relevant double entries on 1 January 2020.

b. Prepare extracts from the financial statements of Lessee Ltd in respect of the lease agreement for the year ended 31 December 2020.

Note: amortization table is required to show

c. Comment the accounting treatment of lease payment in lessee’s book if the lease term is less than 12 months

1.) On June 1, 2020, Hanes Company purchased 10 computers with an invoice price of $50,000. Other costs incurred were sales tax $2,100, Freight $300, installation of $2,300, testing of $300, prepaid insurance to cover the computers; $3,600. The computers are estimated to have a 5-year life and $5,000 salvage value.

Instructions:

1. Find the cost of new computers. ___________________________

2. What is depreciation for 2020 and 2021 if the company uses the double-declining balance method.

2020 ______________________________                                                           

2021 ______________________________                                                                

2.) A company purchased factory equipment for $700,000 on August 1, 2020. It is estimated that the equipment will have a $70,000 salvage value at the end of its estimated 5-year useful life. If the company uses the double-declining-balance method of depreciation, the amount of annual depreciation recorded for the second year after purchase would be. (Round to whole dollars if necessary)

3.) A factory machine was purchased for $375,000 on November 1, 2021. It was estimated that it would have a $75,000 salvage value at the end of its 5-year useful life. It was also estimated that the machine would be run 40,000 hours in the 5 years. The company ran the machine for 4,000 actual hours in 2021. If the company uses the units-of-activity method of depreciation, the amount of depreciation expense for 2021 would be.

Lance, the owner of Onya Bikes, informs you that he has completed all adjusting journal entries. He provides the following adjusted ledger balances for the year ended 31 December 2020.

Required:

Prepare/answer the following:

a. An Income Statement for the year ended 31 December 2020. (Classification of expenses not required) (8 marks)

b.  A Statement of Changes in Equity for the year ended 31 December 2020.

c. A classified Balance Sheet as at 31 December 2020.

The following inventory transactions took place near December 31, 2019, the end of the Dixon Company’s fiscal year-end:

1. On December 27, 2019, merchandise costing $2,000 was shipped to the Myers Company on consignment. The shipment arrived at Myers’s location on December 29, but none of the merchandise was sold by the end of the year. The merchandise was included in the 2019 ending inventory.
2. On January 5, 2020, merchandise costing $8,000 was received from a supplier and recorded as a purchase on that date and not included in the 2019 ending inventory. The invoice revealed that the shipment was made f.o.b. destination on December 28, 2019.
3. On December 29, 2019, the company shipped merchandise costing $12,000 to a customer f.o.b. destination. The goods, which arrived at the customer’s location on January 4, 2020, were included in Dixon’s 2019 ending inventory. The sale was recorded in 2020.
4. Merchandise costing $4,000 was received on December 28, 2019, on consignment from the Haskins Company. A purchase was recorded and the merchandise was included in 2019 ending inventory.
5. Merchandise costing $6,000 was received and recorded as a purchase on January 8, 2020. The invoice revealed that the merchandise was shipped from the supplier on December 28, 2019, f.o.b. shipping point. The merchandise was not included in 2019 ending inventory.

Which of the five situations above was accounted for correctly by Dixon Company?

On 1 January 2020, Lessee Ltd entered into a two-years lease with Lessor Ltd for a equipment. The contract contains an option to extend the lease term for a further a year. Lessee Ltd ascertained that it is reasonably certain to exercise this option. The equipment has a useful economic life of 10 years.

Lease payments are $25,000 per year for the initial term and $45,000 per year for the period when the option is exercised. All payments are due at the end of the year (i.e. 31 December). To obtain the lease, Lessee Ltd incurs initial direct costs of $12,500 on 1 January 2020. The interest rate within the lease is not readily determinable. Lessee Ltd s incremental rate of borrowing is 5%. Assume the initial direct cost was paid by Lessee Ltd to third party rather than to Lessor Ltd.

Required:
a. Calculate the initial carrying amount of the lease liability and the right-of-use asset

and prepare the relevant double entries on 1 January 2020.

b. Prepare extracts from the financial statements of Lessee Ltd in respect of the lease agreement for the year ended 31 December 2020.

Note: amortization table is required to show

c. Comment the accounting treatment of lease payment in lessee’s book if the lease term is less than 12 months

Laura Leasing Company signs an agreement on January 1, 2020, to lease equipment to Marigold Company. The following information relates to this agreement.

Prepare all of the journal entries for the lessee for 2020 to record the lease agreement, the lease payments, and all expenses related to this lease. Assume the lessee’s annual accounting period ends on December 31. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round answers to 2 decimal places, e.g. 5,265.25. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Marchant Ltd. reported the following abbreviated statement of financial position and statement of income for 2020.

(a)

Prepare a statement of cash flows for Marchant Ltd. for the year ended December 31, 2020, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

1. Search the Internet for a provincial or federal government overall OR a department business plan.
2. Examine the plan for underlying public policy objectives. List and describe the objectives.

Example

Topic :COVID rapid response

The COVID 19 Rapid Response fund was set up to alleviate the suffering of the people. “In March 2020, the Government of Canada announced $1 billion to support a whole-of-government COVID-19 Response Fund, which supports federal public health measures such as enhanced surveillance, increased testing and ongoing support for preparedness in First Nations and Inuit communities” Government of Canada (2020). The policy aims to reduce the suffering of people hit by COVID 19 that led to the loss of jobs and increment of unemployment in the country.

The objective of the response fund is to support researchers that will help develop measures to detect and reduce the transmission of COVID-19. The fund enabled the health care system to test patience suffering from the virus and help contain the spread of COVID 19 Government of Canada (2020). According to a research from the University of Calgary (2020), he objective is to support Alberta-based genomics projects designed to address specific, short-term needs of industry, not-for-profit, and public sector receptors through research conducted by academics in collaboration with these receptors, with near-term outcomes that address the COVID-19 crisis.