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Neko [114]
3 years ago
6

Anderson Consulting leased machinery from Red Inc. on July 1, 2018. The lease was recorded as a finance lease. The present value

of the lease payments discounted at 9% was $718,000. Ten annual lease payments of $102,641 are due each July 1 beginning July 1, 2018. On July 1, 2019 the debit to Lease Payable will be $_____.
Business
1 answer:
Ray Of Light [21]3 years ago
7 0

Answer:

The debit to lease payable on July 1, 2019 will be $ 670,741.31

Explanation:

According to the details, the present value lease payable as on July 1, 2018 is= $ 718,000

Also, the annual lease payments is = $ 102,641

With these details we are able to calculate the debit to lease payable on 2019, and the calculation is as follows

= ($ 718,000-  $ 102,641) + 9% ( $ 718,000 - $ 102,641)

= $ 615,359 + $55382,31

= $ 670,741 July 1, 2019 debit to lease payable

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Marin Products produces three products — DBB-1, DBB-2, and DBB-3 from a joint process. Each product may be sold at the split-off
sattari [20]

Answer:

  MARIN PRODUCTS

Selling after further processing

                                           DBB-1             DBB-2                 DBB-3

unit                                      16,000         24,000                36,000

Sales revenue after

processing                        $1,040,000    $1,200,000       $2,700,000

Joint Cost                          (757,895)          (1,136,842)        (1,705,263)

Separate processing cost  <u>(110,000)  </u>       <u>(44,000) </u>          <u> (66,000)</u>

Net Income                         <u> 172,105    </u>      <u> 10,158        </u>      <u>  928,737</u>

selling at slipt off point

                                           DBB-1             DBB-2                 DBB-3

unit                                      16,000         24,000                36,000

Sales revenue                  $400,000        840,000           1,980,000

Joint Cost                        <u>  (757,895) </u>        <u> (1,136,842)   </u>     <u>(1,705,263)</u>

Net Income                         <u> (357,895)    </u>      <u> (296,842)        </u>    <u> 274,737</u>

Decision : All products should be processed further in order to increase the profit of the company

Allocation of Joint Cost

Cost per unit = $3,600,000/76,000=  $47.37

DBB-1 =   $47.37*16,000 = $757,895

DBB-2 = $47.37*24,000 = $1,136,842

DBB-3 = $47.37*36,000 = $1,705,263

Explanation:

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She failed to properly assess her risk of storm damage.

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Answer:

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