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
pychu [463]
2 years ago
10

Larkspur Corporation manufactures drones. On December 31, 2019, it leased to Althaus Company a drone that had cost $104,800 to m

anufacture. The lease agreement covers the 5-year useful life of the drone and requires 5 equal annual rentals of $37,400 payable each December 31, beginning December 31, 2019. An interest rate of 7% is implicit in the lease agreement. Collectibility of the rentals is probable. Prepare Larkspur’s December 31, 2019, journal entries
Business
1 answer:
Lady_Fox [76]2 years ago
5 0

Answer:

First find the present value of the lease. Payments are constant and fixed so this is an annuity. As it is to be paid from the beginning, it is an Annuity due.

= Annuity * Present value interest factor of annuity due, 5 years, 7%.

= 37,400 * 4.3872

= $164,081

Date                          Account Details                            Debit              Credit

Dec. 31, 2019            Lease Receivable                         $164,081

                                 Cost of goods sold                       $104,800

                                 Sales                                                                    $164,081

                                 Inventory                                                             $104,800

Date                          Account Details                           Debit                Credit

Dec. 31, 2019           Cash                                             $37,400

                                 Lease Receivable                                               $37,400

You might be interested in
According to the video, what qualities do Traffic Technicians need? Check all that apply.
allsm [11]

Answer:

A. mechanical skills

B. physical flexibility

E. good eyesight

G. patience

H. attention to detail

Explanation:

4 0
3 years ago
Suppose a firm that makes appliances merges with a company that produces running shoes, and it later also buys a dairy. what is
PolarNik [594]

This combination is called CONGLOMERATE MERGER. A conglomerate merger is the unification between firms or companies that are involved in business activities that are no way related to each other. The two types of conglomerate merger are PURE AND MIXED. Pure conglomerate involves companies with nothing in similarity. Whereas for mixed conglomerate, it involves companies that are looking for product or market extensions. 

 

<span> </span>

6 0
3 years ago
Which of the following is NOT one of the five groups in the diffusion of innovation curve
velikii [3]
You do not have anything there cant help
5 0
3 years ago
The selling price of a television is​ $1,600 and the cost to the retailer is​ $225. what is the​ retailer's gross profit from th
Anarel [89]
Find the gross profit fro the sale of the television: 
Gross profit = Sales - Cost of goods sold 
Gross profit = $1,600 - $225
Gross profit = $1,375

The gross profit of a sale is the profit from sales minus the cost it took to produce/complete the item or service. 
8 0
3 years ago
Assume that Global Cleaning Service performed cleaning services for a department store on account for​ $180. How would this tran
tamaranim1 [39]

Answer:

(B) Increase both assets and equity by $180

Explanation:

The transaction analysis model tells us that:

Assets = Liabilities + Owner's Equity

Owner's equity = Contributed Capital + Retained Earnings

Retained Earnings = Net Income − Dividends

and

Net Income = Income − Expenses

The expanded accounting equation is obtain if all substitutions are made:

Asset = Liabilities + Contributed Capital + Income – Expenses − Dividends

In the Global Cleaning Service`s case:

Assets are increased either because the service is collected or is an account receivable. As the service provided is a revenue (income) is part of the Owner's Equity that also increase. Both, Asset and Owner's Equity, increase in 180.  

7 0
3 years ago
Other questions:
  • On January 1, 2016, Wasson Company purchased a delivery vehicle costing $50,710. The vehicle has an estimated 8-year life and a
    11·1 answer
  • Hache Corporation uses the weighted-average method in its process costing system. The first processing department, the Welding D
    7·1 answer
  • According to the eNotes, ____ is a formalized effort by supply chain partners to share data and collectively develop forecasts i
    5·1 answer
  • Sales for a _________ product begin immediately after introduction because the benefits of purchase are readily understood by co
    9·1 answer
  • Edith works for Fast Trades, Inc., a brokerage that facilitates frequent, quick securities transactions for investors. Edith ste
    6·1 answer
  • A​ country's travel exports​ (good and services that international travelers buy while visiting the​ country) are increasing exp
    10·1 answer
  • Which best deceived the nature of cause and effect in the context of the business cycle?
    9·1 answer
  • PRAISE ALLAH!!!!!!!PRAISE ALLAH!!!!!!!PRAISE ALLAH!!!!!!!PRAISE ALLAH!!!!!!! PRAISE ALLAH!!!!!!!PRAISE ALLAH!!!!!!!PRAISE ALLAH!
    15·2 answers
  • Clarisa, an engineering manager, wants to purchase a resort accommodation to rent to skiers. She is considering the purchase of
    10·1 answer
  • Name the institutions that provide technical education in the Nepalese context.
    15·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!