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
Ugo [173]
3 years ago
6

On January 1, 2021, Maywood Hydraulics leased drilling equipment from Aqua Leasing for a four-year period ending December 31, 20

24, at which time possession of the leased asset will revert back to Aqua. The equipment cost Aqua $414,430 and has an expected economic life of five years. Aqua expects the residual value at December 31, 2024, to be $52,000. Negotiations led to Maywood guaranteeing a $73,000 residual value. Equal payments under the lease are $104,000 and are due on December 31 of each year with the first payment being made on December 31, 2021. Maywood is aware that Aqua used a 7 % interest rate when calculating lease payments. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 6 Required: 1. & 2. Prepare the appropriate entries for Maywood on January 1, 2021 and December 31, 2021, related to the lease. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to the nearest whole dollar.)
Business
1 answer:
zlopas [31]3 years ago
6 0

Answer: See explanation

Explanation:

The appropriate entries for Maywood on January 1, 2021 and December 31, 2021, related to the lease goes thus:

January 1, 2021:

Debit Right of use asset $368291

Credit Lease payment $368291

December 31, 2021:

Debit Ammortization expense $92073

Credit Rights of use asset $92073

Debit Interest expense $25780

Debit Lease payable $78220

Credit Cash $104000

The working to the above entries has been attached

You might be interested in
Establishing the structure of a portfolio to meet specific financial goals is called:
photoshop1234 [79]

Answer:

A I believe

Explanation:

4 0
3 years ago
When does a business make a profit?<br> A business makes a profit when its exceed its .
Rasek [7]

Answer:

when sales revenue exceed costs

Explanation:

8 0
3 years ago
Presented below is information from Perez Computers Incorporated. July 1 Sold $20,000 of computers to Robertson Company with ter
Advocard [28]

Answer:

A journal is provided as an attachment to record the entries for Perez Computers.

Explanation:

The gross method of cash discounts assumes that the customer will not take advantage of the offered discount.  It therefore records the sale in full without netting off the discount element.  This was done in the answer.

When Robertson paid within 10 days, the 3% cash discount was allowed since payment was received within the terms of 15 days.

For The Clark Store, there was no discount because payment was received later than the allowed 10 days.

Download xlsx
4 0
3 years ago
True or false. Service quality is unaffected by the interpersonal communications and experiences involved in a service.
allsm [11]

The statement, "service quality is unaffected by the interpersonal communications and experiences involved in a service" is false.

Interpersonal communication is the verbal or nonverbal exchange of information, ideas, and feelings between two or more people. Information is frequently exchanged face-to-face using voice, body language, facial expressions, and gestures. An informational exchange between two or more people is referred to as interpersonal communication. It is also a field of study that aims to comprehend how people use verbal and nonverbal cues to achieve various relational and personal objectives. By assisting you in clearly expressing your ideas and intentions, interpersonal communication skills can help your personal and professional relationships. Your listening abilities will also help you better understand and empathize with others.

More about interpersonal communication brainly.com/question/25709454

#SPJ4

7 0
2 years ago
Through environmental scanning, marketers can learn new ways to reach prospective customers. as they scan the _____________ envi
Alex777 [14]
Technological environment
5 0
3 years ago
Other questions:
  • Starling Company purchased machinery at the beginning of Year 1 at a cost of $86,100. The machinery has an estimated life of fiv
    8·1 answer
  • Assume the bid rate of a New Zealand dollar is $.33 while the ask rate is $.335 at Bank X. Assume the bid rate of the New Zealan
    6·1 answer
  • Read the following scenario. An urban area in southern Texas is rapidly growing. The population has almost doubled over the past
    11·1 answer
  • When an economist says that a currency has become stronger he or she means that?
    8·2 answers
  • A company undergoing _____ completely redesigns its work processes, hoping for dramatic improvements in the efficiency and effec
    10·1 answer
  • For what purpose are goods and services produced in a socialist economy?
    15·2 answers
  • A U.S. firm buys merchandise today to a Japanese company for ¥100,000,000. The current exchange rate is ¥110.58/$, the account i
    10·1 answer
  • Your boss gives you an increase in the number of dollars you earn per hour. this increase in pay makes
    11·1 answer
  • Brazilian Juice, a manufacturer of healthy fruit juices in Brazil, sells juice in six different countries including United State
    13·1 answer
  • .Academic studies suggest that the amount people tip at restaurants is only slightly related to the quality of service, and that
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!