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Zina [86]
3 years ago
7

Tamarisk Leasing Company signs a lease agreement on January 1, 2017, to lease electronic equipment to Carla Vista Company. The t

erm of the non-cancelable lease is 2 years, and payments are required at the end of each year. The following information relates to this agreement:1. Carla Vista has the option to purchase the equipment for $24,500 upon termination of the lease. It is not reasonably certain that Carla Vista will exercise this option.2. The equipment has a cost of $290,000 and fair value of $319,000 to Tamarisk Leasing. The useful economic life is 2 years, with a residual value of $24,500.3. Tamarisk Leasing desires to earn a return of 5% on its investment.4. Collectibility of the payments by Tamarisk Leasing is probable.Prepare the journal entries on the books of Tamarisk Leasing to reflect the payments received under the lease and to recognize income for the years 2017 and 2018. (
Business
1 answer:
bixtya [17]3 years ago
8 0

Answer:

a. $46,000

see the other answers in the explanation

Explanation:

(a) Fair value of leased asset to lessor $245,000

Less: Present value of unguaranteed residual value $24,335 X .63017

(present value of 1 at 8% for 6 periods) $15,335

Amount to be recovered through lease payments $229,665

Six periodic lease payments $229,665 ÷ 4.99271 $46,000*

*Present value of an annuity due of 1 for 6 periods at 8%.

b.

(c)

1/1/17

Lease Receivable 245,000

Cost of Goods Sold 229,665

Sales Revenue 229,665

Inventory 245,000

1/1/17

Cash 46,000

Lease Receivable 46,000

12/31/17

Lease Receivable 15,920

Interest Revenue 15,920

1/1/18

Cash 46,000

Lease Receivable 46,000

12/31/18

Lease Receivable 13,514

Interest Revenue 13,514

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Answer:

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Explanation:

Equivalent unit is computed as follows:

Equivalent units =Degree of completion × units of inventory

Fully worked = 67,000-6,700= 60,300

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<em>Item                                               Equivalent unit</em>

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Total equivalent units                       67,000 units

<em>Note that we used 100% as the degree of completion for materials because materials  required are always added at the beginning of the process</em>

3 0
3 years ago
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Ray Of Light [21]

The dilemma is to decide whether to ignore mother's orders or comply with them in this situation.

<h3>What is Opportunity Cost?</h3>

Opportunity Cost refers to the losses incurred on leaving the other possible alternatives in the decision making and choosing the one. It is the value of the best alternative choose in the process of the decision making.

In the Above situation,the individual would enjoy with friends if he goes to watch the movie However it can lead to trouble with his mother.

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The best course of action would be to obey your mother because the consequences of doing otherwise are much worse.

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7 0
1 year ago
When Zappos focused on aligning and maximizing customer service, distribution, product selection, and other key areas, they were
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Explanation:

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2 years ago
7. Liqin fixes up old cars and sells them to supplement his retirement income. Liqin came across a beat-up 1955 Corvette that sh
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Answer:

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Expected Return = [{(15%*0.2)+(10%*0.2)+(5%*0.6)} * 100]%

Expected Return = [{(0.15*0.2)+(0.1*0.2)+(0.05*0.6)} * 100]%

Expected Return = [{0.03+0.02+0.03} * 100]%

Expected Return = [{0.08 * 100}]%

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So, Liqin's expected return for fixing up and selling the Corvette is 8%.

7 0
3 years ago
How do i solve capital for a month on a balance sheet
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The net working capital formula is calculated by subtracting the current liabilities from the current assets. Here is what the basic equation looks like. Typical current assets that are included in the net working capital calculation are cash, accounts receivable, inventory, and short-term investments.
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