All categories

2 years ago

On 1 July 2019, Fisher Ltd decides to lease a cargo ship from XFinance Ltd. The term of the lease is 20

Business

1 answer:

Alla [95]2 years ago

4 0

Answer:

a. FV of Lease Payment=2215552

b. Debit Credit

Recognition of Lease

01-Jul-19 ROU Asset $2215560

Lease Liability $2215560

30-Jun-20 Recording Lease Payment

Lease Liability $225000

Lease Expense $25000

Bank $250000

30-Jun-20 Recording Interest

Interest Expense $199056

Lease Liability $199056

c. Debit Credit

Recognition of Lease

Lease Receivable $2215560

ROU Asset $2215560

30-Jun-20 Recording Lease receipt

Bank $250000

Fisher Ltd $25000

Lease Receivable $225000

30-Jun-20 Maintainace Expense

Lease Expense$25000

Bank $25000

Fisher Ltd $25000

Lease Expense $25000

30-Jun-20 Recording Interest

Lease Receivable $199056

Interest Expense $199056

Explanation:

According to the given data Interest rate implict in the lease = 10%

Year Lease Discounting PV of Lease Payment

Factor 10%

0 300000 1.0000 300000

1 225000 0.9091 204545

2 225000 0.8264 185950

3 225000 0.7513 169046

4 225000 0.6830 153678

5 225000 0.6209 139707

6 225000 0.5645 127007

7 225000 0.5132 115461

8 225000 0.4665 104964

9 225000 0.4241 95422

10 225000 0.3855 86747

11 225000 0.3505 78861

12 225000 0.3186 71692

13 225000 0.2897 65174

14 225000 0.2633 59250

15 225000 0.2394 53863

16 225000 0.2176 48967

17 225000 0.1978 44515

18 225000 0.1799 40468

19 225000 0.1635 36789

20 225000 0.1486 33445

a. FV of Lease Payment=2215552

b. Journal Entry In the books of Fisher Ltd.

Debit Credit

Recognition of Lease

01-Jul-19 ROU Asset $2215560

Lease Liability $2215560

30-Jun-20 Recording Lease Payment

Lease Liability $225000

Lease Expense $25000

Bank $250000

30-Jun-20 Recording Interest

Interest Expense $199056

Lease Liability $199056

c.Journal Entry

Debit Credit

Recognition of Lease

Lease Receivable $2215560

ROU Asset $2215560

30-Jun-20 Recording Lease receipt

Bank $250000

Fisher Ltd $25000

Lease Receivable $225000

30-Jun-20 Maintainace Expense

Lease Expense$25000

Bank $25000

Fisher Ltd $25000

Lease Expense $25000

30-Jun-20 Recording Interest

Lease Receivable $199056

Interest Expense $199056

You might be interested in

_____ runs a computer and allows people to use the computer to perform specific tasks, such as creating letters, preparing budge

Komok [63]

Software runs a computer and allows people to use the computer to perform specific tasks, such as creating letters, preparing budgets, managing inventory and customer databases.

<h3>What enables users to perform specific tasks on a computer?</h3>

Application software, also known as an application or an app, is computer software designed to help the user to perform specific tasks.

Examples include enterprise software, accounting software, office suites, graphics software and media players.

Many application programs deal principally with documents.

Software is a set of instructions, data or programs used to operate computers and execute specific tasks.

It is the opposite of hardware, which describes the physical aspects of a computer.

Software is a generic term used to refer to applications, scripts and programs that run on a device.

To learn more about Software, refer

https://brainly.ph/question/2347771

#SPJ4

6 0

1 year ago

An individual is attempting to determine if it is necessary to register as an investment advisor due to the nature of some of th

statuscvo [17]

Answer:

[D]

Explanation:

Based on the information provided within the question it can be said that the Clients being accredited or qualified would not affect registration requirements or exemptions. This is due to Investment Advisors Act of 1940 and Investment Advisor would have to register if they are giving advice about securities, being compensation, and being the business of giving advice, regardless if the client are accredited or qualified.

4 0

3 years ago

you work with a group of employee's who are in their early 20s. Which of the following methods of communication should you use t

Troyanec [42]

Please give the options in order for us to determine which is best.

5 0

2 years ago

What is the ability of an organization to tailor its products or services to the customer's specifications?

kap26 [50]

Answer:

Mass Customization

Explanation:

Mass Customization -

It is a manufacturing and marketing strategy ,

where huge range of services and products are altered or changed according to the likes and dislikes of the customers , is referred to as mass customization.

It is also known as built - to - order and made - to - order.

These type of method are used in order to increase the sale of the goods and service , by modifying the goods according to the customers satisfaction.

Hence , from the question,

The correct term is mass customization.

6 0

3 years ago

Assets Liabilities and Net Worth Reserves $51 Checkable Deposits $140 Loans 109 Stock Shares 130 Securities 100 Property 10 Refe

erastovalidia [21]

Answer:

$9 billion

Explanation:

Calculation to determine what The commercial banking system has excess reserves of

Using this formula

Excess Reserve= Net Worth Reserves -Required reserve

Let plug in the formula

Excess Reserve=$51 billion - (.30*$140 billion)

Excess Reserve=$51 billion-$42 billion

Excess Reserve=$9 billion

Therefore The commercial banking system has excess reserves of $9 billion

5 0

3 years ago