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amm1812
2 years ago
6

Ely Roofing Contractors enters into a lease for the use of new equipment. The term of the lease is three years. The annual lease

amount is $6,000. The present value of the lease payments is $50,000. Ely Roofing estimates the economic life of the equipment to be five years. The lease is considered a finance lease. The journal entry to record the initial transaction will include a
Business
1 answer:
Afina-wow [57]2 years ago
5 0

The journal entry to record the initial transaction (Right of Use Asset and Lease Liability of $50,000) for Ely Roofing Contractors, who enters into a lease for the use of new equipment for 3 years at an annual lease payment of $6,000 is as follows:

<h3>Journal Entry:</h3>

Debit Right of Use Asset $50,000

Credit Lease Liability $50,000

  • To record the initial transaction of the Lease Liability and the Right of Use Asset.

<h3>How to record the initial lease transactions?</h3>

The present value of annual lease payments is first computed.  

With this figure, the recording of the asset and liability is completed by debiting the Right of Use Asset and crediting the Lease Liability account.

<h3>Data and Calculations:</h3>

Annual lease payment = $6,000

Present value of lease payments = $50,000

Economic life of the equipment = 5 years

Lease term = 3 years

Nature of lease = finance lease

<h3>Initial Transaction Analysis:</h3>

Right of Use Asset $50,000 Lease Liability $50,000

Learn more about recording the initial transaction of a finance lease at brainly.com/question/16646812

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sergey [27]

true because they closed

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3 years ago
A security professional needs to identify a physical security control that will identify and authenticate individuals before all
horrorfan [7]

Answer:

A mantrap

Explanation:

A mantrap controls access to a secure area, and only allows one person to pass at a time. The scenario describes the social engineering tactic of tailgating, not the control to prevent it.

Some advanced mantraps include identification and authorization systems, such as biometric systems or smart cards and PINs. However, biometrics and smart cards used for physical security do not restrict passage to one person at a time unless they are combined with a mantrap.

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The u.s. government may require that apparel imported into the united states should use u.s. cotton, or use a certain amount of
slavikrds [6]

The u.s. government may require that apparel imported into the united states should use u.s. cotton, or use a certain amount of American labor. this is an example of a Domestic content provision

<h3>What is Domestic content provision?</h3>
  • The Domestic content provision ("BAA," originally found at 41 U.S.C. 10a–10d, now found at 41 U.S.C. 8301–8305), passed by Congress in 1933 and signed by President Hoover on his final day in office (March 3, 1933), mandated that the U.S. government give preference to purchases of goods made in the United States.
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  • The "Domestic content provision," which went into effect 50 years after the "Domestic content provision," is not to be mistaken with the former. The latter is 49 U.S.C., 5323 (j), a provision of the Surface Transportation Assistance Act of 1982, and it only applies to procurements linked to mass transit that cost more than $100,000 and were at least partially funded by government funding.

To learn more about Domestic content provision with the given link

brainly.com/question/15869059

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8 0
1 year ago
Beranek Corp has $720,000 of assets (which equal total invested capital), and it uses no debt—it is financed only with common eq
lozanna [386]

Answer:

firm must borrow $288000 to achieve the target debt ratio

Explanation:

given data

assets = $720,000

debt to total capital ratio = 40%

to find out

How much must the firm borrow to achieve the target debt ratio

solution

we get here debt here by Debt to Total capital ratio that is express as

Debt to Total capital ratio = Debt ÷ (  Debt + Equity  )   ....................1

put here value we get debt

0.40 = \frac{debt}{720000}

debt = $288000

so firm must borrow $288000 to achieve the target debt ratio

7 0
3 years ago
As the price level falls a. people will want to hold more money, so the interest rate rises. b. people will want to hold more mo
icang [17]

Answer:

The answer is C.

Explanation:

As the general price level decreases or falls, people will want to hold less money, so the interest rate falls.

As price level falls, value of money decreases because a unit of money will more of goods or services.

During this period people will want to hold less money because of the decrease in value and the excess money will be deposited in banks.

With this, the banks have more money to lend out and this will make the bank to reduce its Interest rate.

8 0
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