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ValentinkaMS [17]
2 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]2 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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Managerial accounting is governed by generally accepted accounting principles (gaap). a. true b. false
diamong [38]

This is a False Statement.

Generally Accepted Accounting Principles (GAAP) need not be followed by managerial accountants when preparing management reports.

Specifically, management accounting aims to

  • provide Information for internal Organisation managers
  • providing details to governmental regulating bodies
  • Information for shareholders, the accounts payable department, and other parties outside the company
  • information to shareholders, accounts payables, and other parties outside the company, as well as information to management inside the firm.

To Learn more about Management Accounting, Click the links.

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3 0
2 years ago
What are two assumptions pertinent to the resource-based view of competitive advantage? Group of answer choices firms are homoge
qwelly [4]

Answer:

The two assumptions are as <em>resources must also be heterogeneous and immobile.</em>

Explanation:

The two critical assumptions of Resource Based View are <em>that resources must also be heterogeneous and immobile.</em>

Heterogeneous. <em>The first assumption is that skills, capabilities and other resources that organizations possess differ from one company to another.</em>

Immobile. <em>The second assumption of RBV is that resources are not mobile and do not move from company to company, at least in short-run.</em>

6 0
3 years ago
Problem 2 (9 points) The following information was taken from the income statement and balance sheet of The Perryman Company for
Len [333]

Answer and Explanation:

The computation is shown below;

The net profit margin is

= Net income ÷ sales revenue

= $184,000 ÷ $574,000

= 32%

The asset turnover is

= Sales revenue ÷ average of assets

= $574,000 ÷ ($2,142,000 + $1,998,000)  ÷ 2

= $574,000 ÷ $2,070,000

= 0.28 times

c. The return on assets is

= Net income ÷ average of assets

= $184,000 ÷ $2,070,000

= 0.089

= 8.89%

3 0
3 years ago
What can you conclude about the relationship between the slope of the demand curve above and its elasticity?
NemiM [27]

Answer:

By definition, the price elasticity of demand equals the percentage changes in the quantity demanded divided by the percentage changes in the price. There is an opposite relationship between the demand elasticity and the slope of the demand curve.

6 0
3 years ago
Good strategy execution involves Multiple Choice making choices among broad or narrow low cost and differentiation strategies to
Semmy [17]

Answer:

<u><em>The answer is:</em></u> team participation to perform strategy-critical activities in light of prevailing circumstances.

Explanation:

The good execution of the strategy is mainly related to the ability of managers to involve all operational areas and all employees in the process of participating in the strategic actions that were developed to achieve the goals and objectives of the organization.

Therefore, managers have an essential role in exercising control, coordination and monitoring of the teams, so that the execution of the strategy takes place in an effective and active manner, being shared as a responsibility and efforts of the entire team.

8 0
3 years ago
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