Instructions (round all figures to the next penny) a) Establish a repayment plan that would be appropriate for the taker. b) Prepare all registrations for the diary for the taker for 2007 and 2008 to cover the lease, rental payments and all expenses related to the lease. Suppose the taker`s annual accounts are sent on December 31. Laura Leasing Company signed an equipment lease agreement to Larkspur Company on January 1, 2020. The following information relates to this agreement. Laura Leasing Company signed an equipment lease agreement to Plote Company on January 1, 2007. The above information, at page 1136, refers to this agreement. 1. The duration of the non-cancellable lease is 5 years without a renewal option. The equipment has an estimated economic duration of 5 years. 2.
The fair value of the assets as of January 1, 2007 is $80,000. 3. At the end of the lease period, the asset will return to the renter, to whom the asset is expected to have a residual value of $7,000, none of which is guaranteed. 4. Plote Company assumes direct responsibility for all execution costs including the following annual amounts: ($1) $900 to the Rocky Mountain Insurance Company for insurance and (2) $1,600 to Laclede County for property taxes. 5. The contract requires the same annual rent of $18,142.95 to the lessor, as of January 1, 2007. 6.
The incremental interest rate on leasing is 12%. The implied rate of the lessor is 10% and is known to the lessor. 7. Plote Company uses the line damping method for all devices. 8. Plote can use cancellation entries. Prepare all diary entries for the taker for 2020 and 2021 to cover the rental agreement, rental payments and all expenses related to the lease. Suppose the taker`s annual accounts are sent on December 31. (Account securities are automatically withdrawn when the amount is entered. Do not enter manually. Round answers to 0 decimals, z.B 5,265.
Enter log entries in the order displayed in the problem.) . . . This content has been copied by BrainMass.com – Look at the original and get the solution ready here! LARKSPUR COMPANY (Lessee) Leasing amortization schedule . . The attached Word document shows the amortization plan and log entries for Laura Leasing Company. Check the attached file if the formatting is not correct here. Thank you.
. A: There are three types of stock assessment methods: a.FIFO b. LIFO c. Weighted average a. FIFO: in… F: Start of stock, buying and selling copper items are: 1 stock sale … Choose a transaction date1/1/2012/31/201/1/2112/31/21In 2020 1/1/2012/31/201/2112/31/21End 2020In 2021 . F: 1.
Compare and compare, such as depreciation costs (GAAP) compared to MACRS depreciation c… Click here to see the factor tables. (For calculation, use 5 decimals as shown in the factor table provided.) A: Property and equipment is assets that exist physically, such as .B. First, we need to determine whether the lease-sale is a capital lease or operating contract. Annual rental interest date (10%) Reducing leasing liability The lease guarantee is a lease since: 1. The term of the lease (5 years) > 75% of the remaining economic life of the asset (five years) 2. PV of minimum rental payments – annual rent -PV of an annuity due of 1 for No. 5, i – 10% – 18,142.95 USD – 4,16986 – 75,653.56 USD exceeds 90% of the fair value of the asset (80,000 USD).