https://education.wiley.com/content/Kieso_Intermediate_Accounting_17e/media/simulations/interest_rate_tables.pdf Vaughn Corporation enters into a 6-year lease of equipment on December 31, 2019, which requires 6 annual payments of$41,600 each, beginning December 31, 2019. In addition, Vaughn guarantees the lessor a residual value of $19,800 at the end of thelease. However, Vaughn believes it is probable that the expected residual value at the end of the lease term will be $9,900. Theequipment has a useful life of 6 years.Prepare Vaughns' December 31, 2019, journal entries assuming the implicit rate of the lease is 10% and this is known to Vaughn.(Credit account titles are automatically indented when amount is entered. Do not indent manually. For calculation purposes, use 5 decimalplaces as displayed in the factor table provided and round final answers to O decimal places e.g. 5,275.)Click here to view factor tables.DateDecember 31,2019December 31,2019Account Titles and ExplanationCashLease Receivable(To record the lease liability)(To record lease payment)Debit41,600Credit41,600

INTRODUCTION: The process of entering an accounting transaction into the financial records of a…

Vaughn Corporation enters into a 6-year lease of equipment on December 31, 2019, which requires 6 annual payments of $41,600 each, beginning December 31, 2019. In addition, Vaughn guarantees the lessor a residual value of $19,800 at the end of the lease. However, Vaughn believes it is probable that the expected residual value at the end of the lease term will be $9,900. The equipment has a useful life of 6 years.

Vaughn Corporation enters into a 6-year lease of equipment on December 31, 2019, which requires 6 annual payments of $41,600 each, beginning December 31, 2019. In addition, Vaughn guarantees the lessor a residual value of $19,800 at the end of the lease. However, Vaughn believes it is probable that the expected residual value at the end of the lease term will be $9,900. The equipment has a useful life of 6 years.

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

The function of forward rate is generally used in ______. A. immediate transactions B. previous transactions C. bond transactions D. hedging
How to journalize the purchase of bonds.
Question Content Area The journal entry a company makes for the issuance of bonds when the contract rate is less than the market rate would be a. debit Cash, credit Premium on Bonds Payable and Bonds Payable b. debit Cash, credit Bonds Payable c. debit Cash and Discount on Bonds Payable, credit Bonds Payable d. debit Bonds Payable, credit Cash
Who is in charge of announcing future Treasury Auctions? а. The Federal Reserve b. The Treasury C. Dealers d. FOVP
Discuss in detail Interest Rate Parity (IRP) theory and interest Fisher Effect (IFE) with examples. What are their applications in Real Life?
Briefly explain any ten principles of the grameen model of lending
https://www.investopedia.com/terms/i/interestraterisk.asp Please explain what is interest rate risk in your own words based on the reference above.
The Interest rate on which of the following is the LIBOR? a. Bankers' acceptances b. Repurchase agreement c. Certificate of Deposits d. Eurodollar CD
Write a note on how interest rates can be forecasted
Concepts:(i) Identify and describe the three basic theories used to explain the term structure of interest rates.(ii) What is the term structure of interest rates and how is it expressed?(iii) Describe briefly what is meant by the time value for money?
Identify investments as an investment in either debt (D) securities or equity (E) securities. Apple bonds
Discuss the process of accounting for long term bonds from issuance to sale or retirement