All categories

2 years ago

The journal entry for recording payment for the short-term lease of a fixed asset would?

1 answer:

3 0

The finance lease is the journal entry can be created by debiting the lease asset account and crediting the lease liability account. The amount of lease asset or lease liability recorded in this journal entry is the fair value of total lease payments.

Because short-term leases are not capitalized, no depreciation expense on the right of use asset or finance cost on the lease liability is recognized. Payments on short-term leases are expensed by the less on a straight-line or other systematic basis.

Debit the appropriate fixed asset account and credit the capital lease liability and account with the amount.

To learn more about asset here

brainly.com/question/14826727

#SPJ4

You might be interested in

Anchor Company purchased a manufacturing machine with a list price of $93,000 and received a 2% cash discount on the purchase. T

r-ruslan [8.4K]

Answer:

$100,340

Explanation:

The amount of cost recorded in the asset account would be:

List price $93,000

Less: Discount ($93,000*2%) $1,860

Add: Freight $3,800

Add: Installation&Testing $5,400

Cost of the machine $100,340

Note: Insurance cost is not included in the cost of the machine

6 0

3 years ago

Cyberphone, a manufacturer of cell phone accessories, ended the current year with annual sales (at cost) of $72 million. During

viktelen [127]

Answer:

INCREASE IN AVERAGE INVENTORY VALUE REQUIRED = $2.25 million

Explanation:

Inventory turnover will be determined as :

Inventory turnover = Annual sales ( at cost ) / Inventory value

Annual sales this year = $72million

Inventory turnover = 8 times

Therefore , Inventory value of current year = $72/8 =$ 9 MILLION

If annual sales ( at cost ) increases by 25%, Inventory value also has to increase by 25% to maintain the same inventory turnover ratio next year

Therefore , increase in average inventory value required = 25% of $9 million = $2.25 million

INCREASE IN AVERAGE INVENTORY VALUE REQUIRED = $2.25 million

5 0

3 years ago

The Cromwell Company sold equipment for $35,000. The equipment, which originally cost $120,000 and had an estimated useful life

Alla [95]

Answer:

Explanation:

Original Cost -$120,000

Useful life -10 years

Residual Value - $20000

Annual depreciation - $(120,000-20000)/10 = $10,000

Accumulated depreciation for 4 years = 10*4= $40000

Book value at disposal = $120,000-$40000= $80000

Sales value = $35,000

Loss on disposal = $80,000-$35000= $45,000

5 0

3 years ago

The ______ must decide which tasks should be done in-house and which tasks should be done by subcontractors or consultants.

vitfil [10]

The answer to the blank space of the statement is project manager.

A project manager is a person whose main responsibility is to manage the planning, procurement, and execution of a project from start to finish. This also includes determining what milestones can be managed in-house (by people inside the company) or should be done by subcontractors or consultants.

8 0

4 years ago

Failure to adequately plan for retirement can result in

frutty [35]

I believe the answer is 'D. Additional Taxes'

Hope this helps.

5 0

4 years ago