Answer:
- The lessee reports a single amount of lease expense, which is equal to interest expense plus amortization expense, in its income statement.
- The lessee reports lease expense on a straight-line basis and the lessor reports lease revenue on a straight-line basis over the lease term.
Explanation:
An operating lease is basically renting an asset from a lessor where the lessee will pay a certain amount every period for the use of the asset.
This rent payment is equal to the interest expense plus amortization expense and will be reported in the income statement of the lessee as an expense.
This amount will also be reported on a straight-line basis for the duration of the lease term which means that even if rent increases, it will still have to be reported by the same amount over the lease period because the lease increase should have been taken into account already.
The lessor also reports lease revenue on a straight-line basis over the lease term.
Answer:
Actual manufacturing overhead = 195%
Budgeted manufacturing overhead rate = 180%
Explanation:
The computation of actual and budgeted manufacturing overhead rates for 2017 is shown below:-
Particulars Budgeted for 2017 Actual result for 2017
Direct material
cost $2,250,000 $2,150,000
Direct manufacturing
labor costs $1,700,000 $1,650,000
Manufacturing overhead
costs $3,060,000 $3,217,500
Actual manufacturing
overhead 195%
Budgeted manufacturing
overhead rate 180%
Therefore for computing the actual manufacturing overhead we simply divide the manufacturing overhead cost by direct manufacturing labor cost of actual result for 2017 while for computing the budgeted manufacturing overhead rate we simply divide the manufacturing overhead cost by direct manufacturing labor cost of budgeted for 2017.
Answer:
Explanation:
a. In this transaction, the cash balance is reduced by ($120) and no impact on the net income as the purchase is made so there is an outflow of cash
b. In this transaction, the cash balance has no impact and the net income balance is reduced by ($30) as it is treated as an expense
c. In this transaction, the cash balance has no impact and the net income balance is increased by $1,400 as the revenue is made
d. In this transaction, the cash balance is increased by $750 and no impact on the net income as there is an inflow of cash
e. In this transaction, the cash balance is reduced by ($2,900) and no impact on the net income as there is an outflow of cash
f. In this transaction, the cash balance has no impact and the net income balance is decreased by ($580) as depreciation is a non-cash expense
Answer:
oil plataform 450,000 debit
ARO liability oil Plataform 450,000 credit
Explanation:
We will recognize the ARO at fair value, and then recongize an interest expense each year to make his balance equal to 1,000,000
The ARO will be capitalized into the oil plataform long-term assets
and depreciate over the past of time.
Rochelle sets the goal, "To increase my Business Writing grade from a 45 to a 95 in the next two weeks, I will study six hours a day and submit four drafts of the next assignment for feedback."
How should Rochelle change her goal to make it more effective?
make it more realistic