Chance Enterprises leased equipment from Third Bank Leasing on January 1, 2024. Chance elected the short-term lease option.Appropriate adjusting entries are made annually.Related Information:Lease termMonthly lease paymentsEconomic life of assetInterest rate charged by the lessorView transaction listRequired:Prepare appropriate entries for Chance from the beginning of the lease through April 1, 2024.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.Journal entry worksheet<123451 years (12 monthly periods)on January 1, 2024, through December 1, 2024.years$56,00058%Record the beginning of the lease for Chance.A

A short-term lease, also known as an operating lease, is a lease agreement that is typically for a…

elated Information: ease term enthly lease payments. conomic life of asset terest rate charged by the lessor 1 $56,000 5 8% years (12 monthly periods) on January 1, 2024, through December 1, 2024. years

elated Information: ease term enthly lease payments. conomic life of asset terest rate charged by the lessor 1 $56,000 5 8% years (12 monthly periods) on January 1, 2024, through December 1, 2024. years

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter20: Accounting For Leases

Section: Chapter Questions

Problem 14E: Lessee and Lessor Accounting Issues The following information is available for a noncancelable lease...

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Chance Enterprises leased equipment from Third Bank Leasing on January 1, 2024. Chance elected the short-term lease option. Appropriate adjusting entries are made annually. Related Information: Lease term Monthly lease payments Economic life of asset Interest rate charged by the lessor View transaction Bet Required: Prepare appropriate entries for Chance from the beginning of the lease through April 1, 2024. Note: If no entry is required for a transaction/event, select "No Journal entry required" in the first account field. Journal entry worksheet 1 2 3 Note: Enter debits before credits. Date January 01, 2024 Record entry 4 Record the beginning of the lease for Chance. 5 1 $48,000 5 9% General Journal Clear every years (12 monthly periods) on January 1, 2024, through December 1, 2024. years Debit Credit View general Journal
Chance Enterprises leased equipment from Third Bank Leasing on January 1, 2021. Chance elected the short-term lease option. Appropriate adjusting entries are made annually. Related Information: Lease term Monthly lease payments Economic life of asset Interest rate charged by the lessor Required: Prepare appropriate entries for Chance from the beginning of the lease through April 1, 2021. (If no entry is required for a transaction/event, select "No Journal entry required" in the first account field. Round your answers to the nearest whole dollar amount.) View transaction list Journal entry worksheet 1 Note: Enter debits before credits. Record the beginning of the lease for Chance. Date January 01, 2021 5 Record entry 1 year (12 monthly periods) $78,000 at Jan. 1, 2821, through Dec. 1, 2821. 5 years 9% General Journal Clear entry Debit Credit View general Journal
Windsor Leasing Company signs an agreement on January 1, 2020, to lease equipment to Cole Company. The following information relates to this agreement. 1. 2. 3. 4. 5. Prepare all of the journal entries for the lessor for 2020 and 2021 to record the lease agreement, the receipt of lease payments, and the recognition of revenue. Assume the lessor's annual accounting period ends on December 31, and it does not use reversing entries. (Credit account titles are automatically inden when amount is entered. Do not ind manually. Record journal entries in the order presented in the problem.) Date 20 0 /20 The term of the non-cancelable lease is 6 years with no renewal option. The equipment has an estimated economic life of 6 years. The cost of the asset to the lessor is $230,000. The fair value of the asset at January 1, 2020, is $230,000. The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $24,339, none of which is…
Laura Leasing Company signs an agreement on January 1, 2020, to lease equipment to Swifty Company. The following information relates to this agreement. 1. 2. 3. 4. 5. 6. The term of the non-cancelable lease is 3 years with no renewal option. The equipment has an estimated economic life of 5 years. The fair value of the asset at January 1, 2020, is $70,000. The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $7,000, none of which is guaranteed. The agreement requires equal annual rental payments of $21,827.58 to the lessor, beginning on January 1, 2020. The lessee's incremental borrowing rate is 4%. The lessor's implicit rate is 3% and is unknown to the lessee. Swifty uses the straight-line depreciation method for all equipment. Click here to view factor tables. Prepare all of the journal entries for the lessee for 2020 to record the lease agreement, the lease payments, and all expenses related to this lease.…
Assume that on December 31, 2024, Kimberly-Clark Corp. signs a 10-year, non-cancelable lease agreement to lease a storage building from Wildhorse Storage Company. The following information pertains to this lease agreement. The agreement requires equal rental payments of $68,199 beginning on December 31, 2024. The fair value of the building on December 31, 2024, is $498,399. The building has an estimated economic life of 12 years, a guaranteed residual value of $9,000, and an expected residual value of $4,900. Kimberly-Clark depreciates similar buildings on the straight-line method. The lease is nonrenewable. At the termination of the lease, the building reverts to the lessor. 5. Kimberly-Clark's incremental borrowing rate is 8% per year. The lessor's implicit rate is not known by Kimberly-Clark. 1. 2. 3. 4. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.)
On December 31, 2019, Skysong Corporation signed a 5-year, non-cancelable lease for a machine. The terms of the lease called for Skysong to make annual payments of $8,162 at the beginning of each year of the lease, starting December 31, 2019. The machine has an estimated useful life of 6 years and a $5,100 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Skysong uses the straight-line method of depreciation for all of its plant assets. Skysong's incremental borrowing rate is 9%, and the lessor's implicit rate is unknown. Click here to view factor tables. What type of lease is this? This is a/an lease. eTextbook and Media List of Accounts Compute the present value of the lease payments. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answer to 0 decimal places e.g. 5,275.) Present value of the lease payments eTextbook and Media List of Accounts
The GAP Inc. discloses the following schedule to its fiscal 2018 (ended February 2, 2019) 10-K report relating to its leasing to its leasing activities. Note: Complete the entire question in Excel and format each answer to two decimal places. Then enter the answers into the provided spaces below with two decimal places. The aggregate minimum noncancelable annual lease payments under leases in effect on February 2, 2019, are as follows: Fiscal Year ($ millions) 2019 $1,098 2020 1,043 2021 847 2022 694 2023 512 Thereafter Total minimum lease commitments $5,638 1,444 Compute the present value of GAP's operating leases using the following assumptions Assmption Discount rate Round remaining lease term to the nearest whole year Year Present Value 1 $ 0 2 0 3 0 4 0 5 0 >5 0 $ 0 6%
On April 1, 2021, Primer Corp. signs a five-year lease to use office space. The present value of the monthly lease payments Is $100,000. Record the lease. (If no entry Is requlred for a particular transaction/event, select "No Journal Entry Requlred" in the first account fleld.) View transaction list Journal entry worksheet 1 Record the lease. Note: Enter debits before credits. Date Account Title Debit Credit April 01, 2021 Record entry Clear entry View general journal
Plummer Leasing Company signs a lease agreement on January 1, 2020, to lease warehouse equipment to AmZon Company. The term of the non-cancelable lease is 2 years, and payments are required at the end of each year. The following information relates to this agreement: 1. 2. 3. 4. AmZon has the option to purchase the equipment for $20,000 upon termination of the lease. It is not reasonably certain that AmZon will exercise this option. The equipment has a cost of $165,000 and fair value of $190,000 to Plummer Leasing. The useful economic life is 2 years, with a residual value of $20,000. Plummer Leasing desires to earn a return of 6% on its investment. Collectibility of the payments by Plummer Leasing is probable.
Prepare the journal entries and adjusting journal entries necessary to record all of Red Robin's transactions related to leases for 2022. On January 1 of the current year (2022), Red Robin's leased a nonspecialized piece of equipment from an equipment dealer. The lease agreement was signed on January 1 and the equipment was provided to Red Robin's on the same day. The terms of the lease are as follows: Payment: $28,740 every 6 months. The 1st payment occurred on January 1 of the current year. The 2nd and 3rd payments occurred on June 30 and December 31 of the current year. Lease term: 10 years. Lessee guaranteed residual value: $4,800. Fair value: $415,000 Carrying value: $415,000 Initial direct costs incurred by the lessor: $11,850. There is no transfer of ownership or purchase option included in the contract. The economic life of the equipment is 14 years. An analysis of this lease is included in the "Lease" spreadsheet attached. The analysis includes a computation of the implicit…
Leasing AG agrees to lease equipment to Fat Choi Furniture on January 1, 2020. The following information relates to the lease agreement.(Assume the accounting period ends on December 31.)a) Calculate the amount of the annual rental payment required. b) Compute the value of the lease liability to Fat Choi Furniture. c) Prepare an 8-year lease amortization schedule for the lessee, Fat Choi Furniture.
Use the information pertaining to Laura Leasing Company and Plote Company from E21.15. Assume that the expected residual value at the end of the lease is $10,000, such that the payments are $24,638.87. Instructions Prepare all of the journal entries for the lessee for 2020 to record the lease agreement, the lease payments, and all expenses related to this lease. Assume the lessee’s annual accounting period ends on December 31. In E21.15 Laura Leasing Company signs an agreement on January 1, 2020, to lease equipment to Plote Company. The following information relates to this agreement. 1. The term of the non-cancelable lease is 3 years with no renewal option. The equipment has an estimated economic life of 5 years. 2. The fair value of the asset at January 1, 2020, is $80,000. 3. The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $7,000, none of which is guaranteed. 4. The agreement requires equal annual…