Answer:
Answer to the question :
On January 1, 2018, Nath-Langstrom Services, Inc., a computer software training firm, leased several computers under a two-year operating lease agreement from ComputerWorld Leasing, which routinely finances equipment for other firms at an annual interest rate of 4%. The contract calls for four rent payments of $13,000 each, payable semiannually on June 30 and December 31 each year. The computers were acquired by ComputerWorld at a cost of $90,000 and were expected to have a useful life of five years with no residual value. Both firms record amortization and depreciation semi-annually.
Required:
1. Prepare the appropriate entries for both the lessee and the lessor from the beginning of the lease through the end of 2018.
is explained in the attachment.
Explanation:
Answer:
b. buildings and machines used in the production process
Explanation:
In economics, capital is one of the four factors of production. It refers to the assets used in the production of other goods and services. These assets include buildings, plants, and machinery used in manufacturing, and are not part of the output. Capital includes financial assets needed in facilitating the production process.
In finance and accounting, capital will refer to money or cash equivalents. In economics, capital is not limited to finances only. It includes all the assets used to create wealth. Minerals, equipment, and intangible assets such as copyrights and patents are considered as capital.
Answer: Regulation Fair Disclosure (Reg FD)
Explanation: Passed by the Securities and Exchange Commission, the aim of this rule is to prevent public companies from releasing selective disclosure to a limited group of people. Reg FD goes on to state that when these public companies release info of material value to certain professionals and shareholders, then they are obligated to publicly disclosed this information as well. It is important to note that this regulation doesn't necessary require info to be disclosed to all individuals outside the corporation, but merely disclosure to professionals within the securities market.
