Warren Marina owns a large marina that contains numerous boat slips of various sizes. Warren contracts with boat owners to provide slips to house the customers’ boats. Lucky Fisher Fleet contracted with Warren to provide space for four of its fishing boats. The contract specifies that Lucky Fisher’s boats will be kept in identified slips in the marina. The agreement includes the requirement that Warren provide 45-foot slips per boat for a three-year period, space that Lucky Fisher can modify with fenders, docklines, and equipment needed to conduct its fishing business. Warren cannot switch locations of the boats or modify the slips without Lucky Fisher’s consent. Lucky Fisher paid $16,000 on March 1, 2024, for the first year’s accommodations. The market rate of interest is 5%. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Required: Prepare the appropriate entry(s) for Lucky Fisher Fleet at March 1, the commencement of the agreement.
Warren Marina owns a large marina that contains numerous boat slips of various sizes. Warren contracts with boat owners to provide slips to house the customers’ boats. Lucky Fisher Fleet contracted with Warren to provide space for four of its fishing boats. The contract specifies that Lucky Fisher’s boats will be kept in identified slips in the marina. The agreement includes the requirement that Warren provide 45-foot slips per boat for a three-year period, space that Lucky Fisher can modify with fenders, docklines, and equipment needed to conduct its fishing business. Warren cannot switch locations of the boats or modify the slips without Lucky Fisher’s consent. Lucky Fisher paid $16,000 on March 1, 2024, for the first year’s accommodations. The market rate of interest is 5%. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Required: Prepare the appropriate entry(s) for Lucky Fisher Fleet at March 1, the commencement of the agreement.
Chapter16: Accounting Periods And Methods
Section: Chapter Questions
Problem 17DQ
Related questions
Question
Warren Marina owns a large marina that contains numerous boat slips of various sizes. Warren contracts with boat owners to provide slips to house the customers’ boats. Lucky Fisher Fleet contracted with Warren to provide space for four of its fishing boats.
- The contract specifies that Lucky Fisher’s boats will be kept in identified slips in the marina.
- The agreement includes the requirement that Warren provide 45-foot slips per boat for a three-year period, space that Lucky Fisher can modify with fenders, docklines, and equipment needed to conduct its fishing business.
- Warren cannot switch locations of the boats or modify the slips without Lucky Fisher’s consent.
- Lucky Fisher paid $16,000 on March 1, 2024, for the first year’s accommodations.
- The market rate of interest is 5%.
Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
Required:
Prepare the appropriate entry(s) for Lucky Fisher Fleet at March 1, the commencement of the agreement.
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