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ValentinkaMS [17]
3 years ago
13

On January 1, Year 1, Samuel Company leases equipment from Lease Corp. The lease agreement specifies five annual payments of $50

,000, with the first payment due at lease signing (January 1, Year 1), and at each January 1 from Year 2 to Year 5. At the end of the lease term, the equipment will be returned to the lessor and is expected to have a residual value of $30,000. The estimated useful life of the equipment is six years. The interest rate in the financing arrangement is 6%. The cost to Lease Corp of manufacturing the equipment is $150,000. The journal entry for the Lessor on January 1, Year 1 will include __________-
Business
1 answer:
Marrrta [24]3 years ago
4 0

Answer:

Cash (Dr.) $50,000

Lease Receivable (Cr.) $50,000

Explanation:

Lessor is the person who leases the item to gain financial benefit from the asset user lease. Lessee is a person who uses the assets but does not owns it so he pays lease rentals. In the given scenario the lease recoding at inception in the lessor books will be cash debit and lease receivable credit.

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Under what circumstances might Costco have to start paying its workers less?
Oksi-84 [34.3K]

Answer:

If for some reason Costco was to suffer from a lawsuit then it would have no choice but to cut the pay rates of their employees. Also, if there was a depression in the economic that caused a dramatic decrease in the stores profit.

3 0
3 years ago
Read 2 more answers
Diehl Cleaners has the following balance sheet items. Classify each item as an asset, liability, or owner’s equity. Accounts pay
Strike441 [17]

Answer:

Assets : Cash, Accounts receivable, Equipment

Liabilities : Salaries and wages payable,  Accounts payable,  Notes payable

Owners Equity : Owner’s capital

Explanation:

Assets are valuable things owned by a business, to which firm's present or future monetary economic benefit can be entitled.

Cash , Account receivables (from debtors who owe money to us) , Equipments are all beneficial ownerships and hence are Assets.

Liabilities are financial burden of the business, the amount business owes to others.

Salaries and wages payable, Accounts payable (from creditors to whom we owe money), Notes payable are all financial obligations to be fulfilled by business - so are liabilities of business.

Owners Equity are the assets of business which have been bought in by the Entrepreneur as 'Capital' in the firm.

4 0
3 years ago
On October 1st Joe charged $900 to his credit card, on October 10th he charged another $1,300 to his credit card, and on October
poizon [28]

Answer:

interest expense for October $ 27.25

Explanation:

       900

+  1,300 x 20/30

<u> +     100 x 15/30    </u>

1,816.67 average balance

Now we multiply this average balance by the interest rate of the credit card:

1,816.67 x 0.18/ 12 = 27.25

4 0
3 years ago
At times, an insignificant detail can be important to a significant event. <br> a. True<br> b. False
Minchanka [31]
A. True. You never know what the smallest detail may have.
5 0
3 years ago
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$6000 is invested into 2 accounts at 8% and 7.5% and the total interest is $472.50 how much is invested at 8%?
djverab [1.8K]
0.08x+0.057 (6000-x)=472.5
Solve for x
X=4500 invested at 8%
4 0
3 years ago
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