The document that lists the steps of the budget process is the

(Lessee-Lessor Entries, Sales-Type Lease; Guaranteed Residual Value) Phelps Company leases a building to Walsh, Inc. on January

Artist 52 [7]

<u>Solution and Explanation:</u>

Calculation of Minimum lease annual payments from (MLP)

Year MLP from lessor Present value Present valur of

point of view factor 8% cash flows

1 $4,703 $1 /(1.08)=0925$ $4,350.28

2 $4,703 $1 /(1.08)^{\wedge} 2=0.857$ $4,030.47

3 $4,703 $1 /(1.08)^{\wedge} 3=0.793$ $3,729.48

4 $4,703 $1 /(1.08)^{\wedge} 4=0.735$ $3,456.71

5 $4,703 $1 /(1.08)^{\wedge} 5=0.680$ $3,198.04

Total of Minimum

lease Payments $23,515 $ 18,764.97

Add

Unguaranteed

residual value(ugrv) 4000 $1 /(1.08)^{\wedge 5}=0.680$ $2,720.00

Asset to be recorded

in the books of lessor

(sum of mlp +ugrv) $27,515 $ 21,484.97

Here

Gross Investment=$27515

Lease receivable recorded in in the books of lessor(Phelps)(Mimum lease payments + Unguaranteed residual )value = $21484 $21,484

Walsh (lessee) shoiuld be recorded the amount of present value of minimum lease payments + Guaranteed Residual value=$18764.97 as asset and liabilty

b) In the books of phelps (lessor)

2017.01.01 Lease Recievble from walsh ….Dr $21,484

to Asset $21,484

(Being Lease receivable recorded )

In the books of Walsh (lessee)

2017.01.01 Asset ac ……………Dr $18,764

to Lease Liabilty(Lessor) $18,764

(Being the asset and liabilty recorded )

2017.12.31 Depreciation ……Dr 3752

to Asset 3752

(Beint Depreciation recorded charged during the year recorded 18764/5 provided for 5 years)

Here annual payment started from the at the beginning of year i.e annual lease payments start from 01.01.2018.

c) If expected residual value of $4000 is guaranteed by walsh no changes will be made in classification of lease and there is no chages in asset recorded in Lessor books. But changes will be made in the books of lessee as present value of guaranteed residual value should be added to asset I.e $18764+Present vlue of $4000 $18764+2720=21484

d) If expected residual value of $3000 is guaranteed by walsh no changes will be made in classification of lease and there is no chages in asset recorded in Lessor books But changes will be made in the books of lessee as present value of guaranteed residual value should be added to asset I.e $18764+Present vlue of $3000 $18764+$2040=$20804

5 0

3 years ago

According to the concept of persistence in the rate of growth, if the economy this quarter, it will ____________.

mojhsa [17]

Answer:

Likely contract next quarter.

<h3>What is it called when real GDP continues to increase quarter after quarter?</h3>

Expansion is the phase of the business cycle where the real gross domestic product (GDP) grows for two or more consecutive quarters, moving from a trough to a peak.
Expansion is typically accompanied by a rise in employment, consumer confidence, and equity markets and is also referred to as an economic recovery.

To learn more about it, refer

to brainly.com/question/24448358

#SPJ4

8 0

2 years ago

JNJ just paid a dividend of $1.46 per share on its stock. The dividends are expected to grow at a constant rate of 3.5 percent p

Hoochie [10]

Answer:

$15.61

Explanation:

The Dividend valuation Model would be used to value the stock which is given as under:

Po = Do * (1 + g) / (r - g)

Here

Po is the value of stock now

Do is the dividend just paid

g is the dividend growth rate

And

r is the required rate of return of the investors.

By putting values, we have:

Po = $1.46 * (1 + 3.5%) / (15% - 3.5%) = $13.14

Now this is the value of stock now, so to find the value of stock after 5 years, we will have to compound this value at the growth rate.

So, mathematically:

Future value of Unit share = Share value Now * (1 + g)^n

Here Future value is at 5 years time which means n = 5 years.

g is 3.5% and share value now is Po which is $13.14 per share.

So by putting values, we have:

Future value of Unit share = $13.14 * (1 + 3.5%)^5 = $15.61 per share

3 0

3 years ago

How many back-up contracts can be created using the trec-promulgated addendum?

jok3333 [9.3K]

The answer for this question is: ONE
In this case, TREC stands for Texas Real estate commission. The Back-up contract is created to determine the buyer next-in line to purchase the property.
By making this, the seller will be obligated to approach next-in line buyer if the first buyer fail to fulfill the approved contract

3 0

3 years ago

The production possibilities frontier illustrates

liubo4ka [24]

Answer:

Option (c) is correct.

Explanation:

The production possibility frontier is a graphical representation of combination of two different goods that an economy can produce with the limited available resources. All the points on the production possibility frontier curve represents efficient allocations and all the points below that curve are inefficient.

All the points above this curve are unattainable or we can say that combination are not affordable for the economy.

7 0

3 years ago