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Rina8888 [55]
2 years ago
11

Cullumber Co. leased equipment to Union Co. on July 1, 2021, and properly recorded the sales-type lease at $131,000, the present

value of the lease payments discounted at 10%. The first of eight annual lease payments of $19,600 due at the beginning of each year of the lease term was received and recorded on July 1, 2021. Cullumber had purchased the equipment for $120,000. What amount of interest revenue from the lease should Cullumber report in its December 2021 income statement
Business
1 answer:
Dimas [21]2 years ago
8 0

Answer:

$5,570

Explanation:

Calculation of the amount of interest revenue from the lease that Cullumber should report in its December 2021 income statement

Interest Revenue= (Sales-type lease -Annual lease payments)× lease payments discount × Numbers of month

Hence,

Interest Revenue= ($131,000 – $19,600) × .10 × 6/12

Interest Revenue =$111,400×.10×6/12

Interest Revenue =$5,570

Therefore the amount of interest revenue from the lease that Cullumber should report in its December 2021 income statement would be $5,570

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Traditionally, department stores almost exclusively offered soft goods. But now, most department stores focus on selling both ha
Studentka2010 [4]

Answer:

False

Explanation:

Traditionally, department stores sold both soft goods and hard goods. But now, most department stores focus almost exclusively on soft goods.

Soft goods refers generally to clothing and other textiles like bedding and fabrics.

Hard goods refers to a broad range of products like appliances, furniture, tools, electronics, etc.

5 0
2 years ago
Suppose a company signs a three-year lease agreement. The lease payments have a present value of $40,000. Prior to signing the l
larisa [96]

Answer:

The balance of total assets, total liabilities, and total stockholders' equity is $640,000, $440,000 and $200,000 respectively.

Explanation:

The computation of the balance of total assets, total liabilities, and total stockholders' equity after considering the lease payment  is shown below:

For Total assets  

= Total assets balance + present value of lease payments

= $600,000 + $40,000

= $640,000

For Total liabilities

= Total liabilities balance + present value of lease payments

= $400,000 + $40,000

= $440,000

And, the total stockholders' equity is $200,000

While computing the stockholder equity, the lease payment does not have an impact on the stockholder equity so the balance would remain the same as before

4 0
2 years ago
Identify the correct statement. Select one: a. During a recession, investment increases while consumption decreases. b. During a
lesantik [10]

Answer:

Option C: Annual variations in investment are larger than annual variations in consumption

Explanation:

Investment

This is simply the act of buying or purchase of assets with the sole aim of increasing future income.

Investment risk

This is simply known as the likelihood of an investment will fail to pay the expected return or fail to pay a return at all.

Portfolio diversification

This act so as to limit the risk by spreading investment money among a wide range of investment tools.

Rate of return

This is simply known as the total return on an investment usually in percentage of the amount of money put into the investment.

8 0
3 years ago
A subsistence economy is one that ________. A subsistence economy is one that ________. meets its needs without working for wage
BigorU [14]

Answer:

The options in the question are not well aligned,find below question with properly aligned options:

A subsistence economy is one that ________.

a. meets its needs without working for wages and purchasing necessities  

b. meets its needs by overfishing lakes and rivers

c. purchases resources for immediate use

d. meets is needs while causing ecosystem destruction

e. purchases goods and services from others

Hence the correct option is A,meets its needs without working for wages and purchasing necessities  

Explanation:

In a subsistence economy,every household provides for its own basic needs,without any need for specialization that leads to exchange.

Specialization is act of engaging in what one knows how to do best, that way efficiency and effectiveness are guaranteed, as every output would have been given a professional touch.

Exchange is the process by which individuals buys their needs from others using money earned from their own specialty as a medium of exchange

5 0
2 years ago
Southern Industries uses job order costing. The following information was drawn from the Company’s monthly accounting reports: J
Vlad [161]

Answer:

The balance in the Work in Process inventory at the month end is $60

Explanation:

Work in Progress : It is a sum of direct material, direct labor and overhead expense. It shows how much percentage of work is left in the company. The work part left in the company is called work in progress.

For computing the Job 3 work in progress, the calculation part is shown below.

= Direct material + Direct labor + overhead expense

= $30 + $10 + 200% × 10

= $30 + $10 + $20

=$60

Hence, the balance in the Work in Process inventory at the month end is $60

8 0
3 years ago
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