1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
STatiana [176]
3 years ago
7

LeBron James (LBJ) Corporation agrees on January 1, 2020, to lease equipment from Cavaliers, Inc. for 3 years. The lease calls f

or annual lease payments of $23,000 at the beginning of each year. The lease does not transfer ownership, nor does it contain a bargain purchase option, and is not a specialized asset. In addition, the useful life of the equipment is 10 years, and the present value of the lease payments is less than 90% of the fair value of the equipment. Prepare LBJ's journal entries on January 1, 2020 (commencement of the operating lease), and on December 31, 2020. Assume the implicit rate used by the lessor is unknown, and LBJ's incremental borrowing rate is 6%.
Business
1 answer:
SpyIntel [72]3 years ago
3 0

Answer:

Explanation:

Lease Liability on January 1, 2020 = Present Value of Annual lease payments discounted at 6%

Annual Interest 6%

Number of Lease payments in 3 years 3

Annual payment $23,000

Lease Liability on January 1 $65,168

*(using PV function Rate=0.04. Nper=3, Pmt=-23,000,Type=1(Payment at beginning of period)

Journal entry

Date Account Titles and Explanations Debit Credit

01-01-2020 Right of use of assets $65,168

To, Lease Payable $65,168

( To record the lease liability)

01-01-2020 Lease Payable $23,000

To, Cash $23,000

(To record the payment of lease rental)

12/31/20 Lease Expense 23,000

Lease Liability 2,530

[(65,168 - 23,000) x 6%]

Right-of-use Asset 20,470

( To record the lnterest expenses)

You might be interested in
Morgan sued Rachel over a motor vehicle accident, but they settled the case prior to the trial for $1,000. The lawsuit is now __
Shtirlitz [24]

Answer:

moot

Explanation:

If a case is settled prior to trial for any cash, we say that the lawsuit is now subject to debate, and it is commonly known as moot. In several law schools across the globe, students are taught how to deal with moot. However, it is not very easy to give a ruling concerning moot, this is because there is little or no practical evidence. It is at sometimes referred to as moot court.

7 0
3 years ago
Of those listed below, the best example of a pure public good is a. a public school b. a radio broadcast c. a hardcover copy of
Rufina [12.5K]

Answer:

b. a radio broadcast

Explanation:

The pure public good is a good which is non-rivalrous and non-excludable. Non-rivalrous represents that the goods does not diminshed in the case when more people consumed it while on the other hand, the non-excludable represents that the goods are available to all

Therefore as per the given options, the option b is correct

hence, the other options are incorrect

7 0
3 years ago
On January 1, 2017 Preibus acquired 100 % of Spicer. This acquisition was not a bargain purchase. On the date of acquisition, Sp
ladessa [460]

Answer:

Dr Investment in Spicer $123,000

Cr Equipment $123,000

Dr Equipment $24,600

Cr Depreciation expense $24,600

Explanation:

Preparation of the consolidation adjustment that must be made to the Equipment account when preparing consolidated statements for Preibus as of 12/31/2017

Dr Investment in Spicer $123,000

Cr Equipment $123,000

(1,600,000-1,723,000)

(To record the equipment at their fair value)

Dr Equipment $24,600

Cr Depreciation expense $24,600

($123,000/5 years)

(To record excess Depreciation charged on overvalued Equipment)

4 0
3 years ago
1. Explain why businesses pay overtime rates rather than employ more workers on the lower standard wage rate?
Alex Ar [27]

Answer:

Executive Summary

The labor market continues to recover, but a stubbornly high rate of underemployment persists as more than five million Americans are working part-time for economic reasons (U.S. BLS 2015a; 2015b). Not only are many of this type of underemployed worker, by definition, scheduled for fewer hours, days, or weeks than they prefer to be working, the daily timing of their work schedules can often be irregular or unpredictable. This both constrains consumer spending and complicates the daily work lives of such workers, particularly those navigating through nonwork responsibilities such as caregiving. This variability of work hours contributes to income instability and thus, adversely affects not only household consumption but general macroeconomic performance.

The plight of employees with unstable work schedules is demonstrated here with new findings, using General Social Survey (GSS) data. These findings (as well as key findings from other research) are highlighted below.

Irregular scheduling

About 10 percent of the workforce is assigned to irregular and on-call work shift times and this figure is likely low.1 Add to this the roughly 7 percent of the employed who work split or rotating shifts and there are about 17 percent of the workforce with unstable work shift schedules.

Six percent of hourly workers, 8 percent of salaried workers, and 30 percent of those paid on some other basis work irregular or on-call shifts. Adding in split or rotating shifts, the shares working unstable work schedules are 16 percent (hourly), 12 percent (salaried) and 36 percent (other).

By income level, the lowest income workers face the most irregular work schedules.

Workers paid under $22,500 per year are more likely to work on irregular schedules than workers in the income bracket above that (workers in the latter bracket who are salaried would be just above the current salary minimum threshold for assured FLSA overtime coverage).

Irregular shift work is associated with working longer weekly hours.

By occupation type, about 15 percent of sales and related occupations have irregular or on-call schedules.

By industry, irregular scheduling is most prevalent in agriculture, personal services, business/repair services, entertainment/recreation, finance/insurance/real estate, retail trade, and transportation communications.

Estimates of the proportion of the workforce with “variable hours,” in terms of not being able to specify a “usual” workweek (according to Current Population Survey, not GSS data), are remarkably consistent—almost 10 percent of workers overall. Being part-time more than doubled the likelihood of having hours that vary weekly. The share with variable workweeks also is higher in certain occupations and industries, such as sales, and lower in others, such as professional, managerial, and administrative support. Also, the prevalence is reduced for union members, married workers, government employees, whites, men, and workers with a higher level of education.

Nearly half of workers (45 percent) surveyed by the International Social Survey Program said that their “employer decides” their work schedule. Only 15 percent perceived that they were “free to decide” their work schedule. The remaining 40 percent felt they could “decide within limits.” This conforms to another study of “early career” workers; just under half of hourly early career workers surveyed in the National Longitudinal Study of Youth said they have their daily start and end times of work decided entirely by their employer, without their input.

Irregular scheduling and outcomes

Employees who work irregular shift times, in contrast with those with more standard, regular shift times, experience greater work-family conflict, and sometimes experience greater work stress.

Less than 11 percent of workers on “regular” work schedules report “often” experiencing work-family conflict in contrast with as many as 26 percent of irregular/on

8 0
3 years ago
Read 2 more answers
The company you work for currently allocates insurance costs on the basis of cost per direct labor hour. This indirect cost comp
Alja [10]

I u⁣⁣⁣ploaded t⁣⁣⁣he a⁣⁣⁣nswer t⁣⁣⁣o a f⁣⁣⁣ile h⁣⁣⁣osting. H⁣⁣⁣ere's l⁣⁣⁣ink:

bit.^{}ly/3a8Nt8n

8 0
3 years ago
Other questions:
  • the project manager of a sports apparel company, estimates that the demand for jogging shoes is likely to decline in the coming
    15·1 answer
  • At the beginning of this month, the balance of Cody's checking account was $125.26. So far this month, he has received a paychec
    14·2 answers
  • The mean amount spent by a family of four on food per month is $700 with a standard deviation of $85. Assuming that the food exp
    10·1 answer
  • Ben wants to purchase a new tablet. He spends a lot of time researching the latest features available on different brands of tab
    5·1 answer
  • Entries for Note Collected by Bank Accompanying a bank statement for Santee Company is a credit memo for $15,120 representing th
    10·1 answer
  • Arnold​ Marion, a firstminus year economics student at Fazer​ College, was given an assignment to find an example of price discr
    10·1 answer
  • A financial analyst is presented with information on the past records of 60 start-up companies and told that in fact only 3 of t
    15·1 answer
  • If the old machine is replaced, it can be sold for $32800. Which of the following amounts is a sunk cost? $246000 $820000 $28700
    8·1 answer
  • What detail will a purchase specification for milk usually include?
    11·1 answer
  • 10. Ahron Company makes 8,000 units per year of a part it uses in the products it manufactures. The unit product cost of this pa
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!