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Komok [63]
3 years ago
13

Briarwood Company enters into a lease for the use of a new piece of equipment. The term of the lease is 3 years, and Briarwood e

stimates the economic life of the equipment to be 4 years. The present value of the lease payments is $58,000. The lease is considered a finance lease. The journal entry to record the initial transaction will include a
Business
1 answer:
WITCHER [35]3 years ago
4 0

Answer:

Dr. Right of use asset $58,000; Cr. Lease liability $58,000

Explanation:

                                       Journal entry

Date     General Journal                       Debit       Credit

            Right of use of asset             $58,000

                    Lease Liability                                  $58,000

            (Entry to record the initial transaction)

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A new manufacturing machine is expected to cost $278,000, have an eight-year life, and a $30,000 salvage value. The machine will
oksano4ka [1.4K]

Answer:

C) 4.2 years

Explanation:

The computation of the payback period is as follows;

As we know that

Payback Period = Initial cost ÷ Annual net cash flow

Here

Initial cost = $278000

Annual net cash flow = Incremental after tax + Depreciation per year

where,  

Depreciation per year = (Original cost - Salvage value) ÷ Estimated Life

= ($278,000 - $30,000) ÷ 8 years

= $31,000

Annual net cash flow is

= $35000 + $31000

= $66000

So,

Payback Period is

= $278000 ÷ $66000

= 4.2 Years

4 0
3 years ago
Fisk Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Fi
adell [148]

Answer:

Please consider the following explanation

Explanation:

a.   EOQ = 560 units

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280 units × $1.50 carrying cost per unit =  420

Total costs = $840

8 0
3 years ago
Accounting
kvv77 [185]

Answer:

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Explanation:

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8 0
2 years ago
If you want to prevent any disputes about the application of the parol evidence rule, what should you do?
Scilla [17]

Answer:

Refrain from introducing evidence of prior oral agreements that occurred before or while the agreement was being reduced to its final form in order to alter the terms of the existing contract and you will have no disputes.

Cheers!

3 0
2 years ago
Read 2 more answers
Mary's a marketing manager for a nationwide restaurant chain. She's considering which channel she should use to advertise her re
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Answer:

Television

Explanation:

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8 0
3 years ago
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