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Alex
4 years ago
12

Assume that IBM leased equipment that was carried at a cost of $178,000 to Sandhill Company. The term of the lease is 7 years De

cember 31, 2019, with equal rental payments of $30,868 beginning December 31, 2019. The fair value of the equipment at commencement of the lease is $178,002. The equipment has a useful life of 7 years with no salvage value. The lease has an implicit interest rate of 7%, no bargain purchase option, and no transfer of title. Collectibility of lease payments for IBM is probable. Assume the sales-type lease was recorded at a present value of $178,002.
Required:
Prepare IBM's December 31, 2017, entry to record the e ansaction with Sandhill Company.
Business
1 answer:
Tanya [424]4 years ago
6 0

Answer:

Explanation:

December 31, 2017

DR Cash $30,868

CR Lease Receivables $20,569

CR Interest Revenue $10,299

(To record less payment receipt)

Workings

Interest Revenue

= ( Present Value - Rental Payment for year) * Interest Rate

= ($178,002 - $30,868 )*7%

= $10,299.38

= $10,299

Lease Receivables

= 30,868 - 10,299

= $20,569

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Answer:

Letter e is correct.<em> Extends beyond ethics to include community, environment, and human rights</em>

Explanation:

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In a globalized world, there is legal pressure from consumers, institutions, NGOs and the media to make companies not only profitable but also voluntary contributors to building a more egalitarian society.

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5 0
3 years ago
A customer sells short 100 shares of ABC stock at $30 as an initial transaction in a margin account. The customer must deposit:
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Answer:

The best answer is C.

Explanation:

Regulation T initial margin to short stock is 50% of $3,000 = $1,500. However, since this is a new account, it must meet the minimum initial margin of $2,000 needed to open an account. Therefore, $2,000 must be deposited.

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3 years ago
Which of the following is a feature of high-level code
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feature

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6 0
3 years ago
Matthew​ Liotine's Dream Store sells water beds and assorted supplies. His​ best-selling bed has an annual demand of 395 units.
Sergeu [11.5K]

Answer:

77.48 units

Explanation:

Data provided in the questions

Annual demand = 395 units

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Holding cost per unit per year = $5

The computation of the economic order quantity is shown below:

= \sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}

= \sqrt{\frac{2\times \text{395}\times \text{\$38}}{\text{\$5}}}

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We simply applied the above formula so that approximate units could come. And it always expressed in units

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Answer:

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