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lana [24]
3 years ago
11

Wilson foods corporation leased a commercial food processor on september 30, 2018. the five-year finance lease agreement calls f

or wilson to make quarterly lease payments of $195,774, payable each september 30, december 31, march 31, june 30, with the first payment at september 30, 2018. wilson's incremental borrowing rate is 12%. wilson records amortization on a straight-line basis at the end of each fiscal year. wilson recorded the lease as follows:
Business
1 answer:
ella [17]3 years ago
8 0

Answer:

The journal entry to record the lease would be:

                      Debit        Credit

Asset            $3,000,000

   Lease Payable     $3,000,000

                    Debit        Credit

Lease Payable           $195,774

   Cash     $195,774

Explanation:

To prepare the journal entry to record the lease we would have to calculate the present value of lease payments as follows:

present value of lease payments=$195,774*15.32380=$3,000.000

Therefore, the journal entry to record the lease would be:

                      Debit        Credit

Asset            $3,000,000

   Lease Payable     $3,000,000

                    Debit        Credit

Lease Payable           $195,774

   Cash     $195,774

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stepan [7]

Answer:

Intensive.

Explanation:

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5 0
3 years ago
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Taya2010 [7]

Answer: Consume.

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3 0
3 years ago
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AnnyKZ [126]

Answer:

They should not make the change because the price of the stocks will decrease.

Explanation:

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if the company changes its capital structure by increasing debt, the price of the stocks will be

$5.92 / 0.136 = $43.53

since the price of the stocks would actually decrease if the capital structure changes, the change should not be made. The stockholders' wealth is measured by the price of the stocks, and if the price of the stocks decreases, then the stockholders' wealth also decreases.

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Phantasy [73]

Answer:

A notice of cessation

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3 years ago
The discount rate is the interest rate charged by:_______.
disa [49]

Answer:

B

Explanation:

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3 years ago
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