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levacccp [35]
3 years ago
8

Exercise 15-14 Presented below are two independent situations. 1. Flinthills Car Rental leased a car to Jayhawk Company for one

year. Terms of the operating lease agreement call for monthly payments of $300. 2. On January 1, 2017, Throm Inc. entered into an agreement to lease 20 computers from Drummond Electronics. The terms of the lease agreement require three annual rental payments of $26,000 (including 11% interest) beginning December 31, 2017. The present value of the three rental payments is $63,536. Throm considers this a capital lease. Prepare the appropriate journal entry to be made by Jayhawk Company for the first lease payment.
Business
1 answer:
IrinaVladis [17]3 years ago
8 0

Answer:

Part 1

Dr Lease rentals $300........ Expense

Cr     Cash Account $300

Part 2

Dr Leased Equipment $63,536

Cr Finance Lease Liability  $63,536

Explanation:

Part 1. Under the operating leases the lessee pays the monthly rentals which must be accounted for as an expense and the double entry is as under:

Dr Lease rentals $300........ Expense

Cr     Cash Account $300

Part 2. Under the finance lease agreement, the lessee pays the value of the asset and the interest as well. So after the date of agreement when the asset is handed over the journal entry would be recording of the equipment received, which would written at its fair value or present value of the payments made. The journal entry would be:

Dr Leased Equipment $63,536

Cr Finance Lease Liability  $63,536

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kvv77 [185]

Explanation:

December 31, 2016: To record accrued wages for one day (10 workers × $145) = $1,450.

January 4, 2017: To record accrued and current wages.

Wages expense = 10 workers × 3 days × $145 = $4,350

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3 years ago
Brand equity is the: Question 3 options:
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Answer:

d) association a consumer places in a brand with an organization.

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8 0
3 years ago
Beridze manufacturing expects to produce​ 2,400 units in january and​ 3,700 units in february. beridze budgets​ $45 per unit for
sladkih [1.3K]
We have that the january units cost 2400*45=108000$. Also, February's cost is going to be 3700*45=166500$. We have that for January, the ending balance needs to be 70% of the stock for February. Hence, it needs to be 70%*166500=116500$. Hence, we will need to pay for the units 108000$ and also 116500$; Thus, the total money that needs to be invested in January is 224500$. However, we already have 37250$, so the total inflow of money is 187250$. Hence, the correct choice is that on January we need 187300$.

(For February, we need to put in 166500$ and also 51800 need to be available at the end of the month. Thus, the total cost needs to be 218300$. However, 116500$ are already available from January. Hence, the total inflow for February is 101800$.
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6 0
3 years ago
Read 2 more answers
a common trait of corporate distribution systems, administered distribution systems, contractual distribution systems and supply
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They all try to improve the efficiency and effectiveness of the distribution systems linking the firms together in a formal and mutual relationship.

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Weaver Corporation had the following stock issued and outstanding at January 1, Year 1: 99,000 shares of $14 par common stock. 8
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Answer:

Total dividends is  $421,600.00  

Explanation:

Preferred shareholders' dividend=preferred shares value*4%

preferred shares value=8000*$80

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Preferred shareholders' dividend=$ 640,000.00*4%

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Common shareholders' dividend =number of shares*dividend per share

number of shares is 99,000

dividend per share is $4

Common shareholders' dividend =99000*$4

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Total dividends=Common shareholders' dividend+Preferred shareholders' dividend

Total dividends=$25,600.00 +$ 396,000.00  

                         =$ 421,600.00  

3 0
2 years ago
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