Blossom Co. leased machinery from Young, Inc. on January 1, 2020. The lease term was for 8 years, with equal annual rental payments of $5,300 at the beginning of each year. In addition, the lease provides an option to purchase the machinery at the end of the lease term for $2,000, which Blossom is reasonably certain it will exercise as it believes the fair value of the machinery will be at least $5,000. The machinery has a useful life of 10 years and a fair value of $38,000. The implicit rate of the lease is not known to Blossom. Blossom's incremental borrowing rate is 8%. Prepare Blossom's 2020 journal entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to O decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.)

Blossom Co. leased machinery from Young, Inc. on January 1, 2020. The lease term was for 8 years, with equal annual rental payments of $5,300 at the beginning of each year. In addition, the lease provides an option to purchase the machinery at the end of the lease term for $2,000, which Blossom is reasonably certain it will exercise as it believes the fair value of the machinery will be at least $5,000. The machinery has a useful life of 10 years and a fair value of $38,000. The implicit rate of the lease is not known to Blossom. Blossom's incremental borrowing rate is 8%. Prepare Blossom's 2020 journal entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to O decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Great Calls has a special plan offer this month. There is a $6.00 per month charge each month and calls anywhere in the United States are $0.04 per minute. What would the monthly cost be if you typically talk for 550 minutes per month? Question 47 options: $16.00 $22.00 $6.00 $28.00
Please try to solve complete within one hour please
Fast pls solve this question correctly in 5 min pls I will give u like for sure Surbh
Fast pls solve this question correctly in 5 min pls I will give u like for sure Surbh A $53,000 loan is taken out on a boat with the terms 9% APR for 36 months. How much are the monthly payments on this loan? < OA. $2,022.46 OB. $1,685.39 OC. $2,191.00 OD. $1,853.92
Fast pls solve this question correctly in 5 min pls I will give u like for sure Mnty An anonymous donor wishes to give an endowment that will initially payout $50,000 per year forever. Assuming they can secure a 4% interest rate, how much would the donor need to contribute to the endowment so that I can pay out forever if a) it continues to pay out $50,000 per year continuously? b) the payouts, have a continuously compounded annual increase of 3%? c) the payouts, increased by $4000 per year continuously?
Plz solve within 30min I vill give definitely upvote and vill give positive feedback
5 You have a credit card with a balance of $11,500 and an APR of 17.3 percent compounded monthly. You have been making monthly payments of $225 per month, but you have received a substantial raise and will increase your monthly payments to $275 per month. How many months quicker will you be able to pay off the account? Multiple Choice 28.75 months 25.88 months 24.64 months 9.29 months 26.83 months
PROBLEM #2 Novex Company keeps careful track of the time to complete customer orders. During the most recent quarter, the following average times were recorded for each unit or order: Days . 17.0 Wait time..... Inspection time........0.4 Process time ..........2.0 Move time ..... Queue time.... .5.0 Goods are shipped as soon as production is completed. ..0.6 Required: 1. Compute the throughput time. 2. Compute the manufacturing cycle efficiency (MCE). 3. What percentage of the production time is spent in non-value-added activities? 4. Compute the delivery cycle time.
Fast pls solve this question correctly in 5 min pls I will give u like for sure Surbh How long will Ricardo's retirement savings of $350,000 last if he withdraws $2,500 at the beginning of every month and the account earns 7% compounded quarterly? (answer as ___ years and ___ months)
plz solve it within 30-40 mins ill give you multiple upvotes
Fast pls solve this question correctly in 5 min pls I will give u like for sure Savitik You bought $15.25 worth of merchandise from a convenience store, but the final bill was $16.44. What is the sales tax rate? 7.6% 8.0% 6.5% 6.9% 7.8% The height of a giant redwood tree is 200 feet, and the height of an oak tree is 120 feet. Taking the height of the redwood tree as the base value, the percentage change in height from the redwood tree to the oak tree is: -31.25% -20.00% -40.00% -14.27% 33.33% The university bookstore sold 4,100 textbooks last year and 4,700 textbooks this year. By what percentage did textbook sales increase over last year's sales? 9.76% 11.90% 9.09% 14.63% 17.07% This year, 5,700 of the students are women. Last year, 4,000 of the students at Big State University were women. What is the percentage change in women who attended Big State University this year compared to last year? 38.00% 42.50% 80.80% 29.82% 70.18% If the unemployment rate…