answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Ad libitum [116K]
1 year ago
9

The city of Brock’s Water Enterprise Fund leases water treatment equipment. The life of the noncancellable lease is 10 years, an

d the expected life of the equipment is 12 years. Using an 8 percent interest rate, the present value of the lease payments is $905,861. The first payment of $125,000 is due when the lease begins, January 5, 2018. An additional payment is due on January 5th for each of the next 9 years. Prepare journal entries to record: 1. The lease of the equipment on January 5, 2018. 2. The first lease payment on January 5, 2018. 3. Amortization expense for fiscal year ending December 31, 2018 4. The second lease payment on January 5, 2019.
Business
1 answer:
Degger [83]1 year ago
3 0

<u>Solution and Explanation:</u>

The Journal Entries in the books of Brock's water enterprise is as follows :-

Date  Particulars and details                             Debit($)  Credit($)

Jan 5, 2018  Intangible Assets - Lease  905861  

Lease Payable                                            905861

(Being Record the Lease)        

Jan 5, 2018  Lease Payable                  125000  

Cash                                                           125000

(Being Record Down Payment)        

Dec 31, 2018  Amortization Expenses ($905861divide 10)  90586  

Accumulated Amortization                                           90586

(Being Record the amortization)        

Jan 5, 2019  Lease Payable (\$ 125000-\$ 62469) 62531  

Interest Expenses ((\$ 905861-\$ 125000) * 8 \%)   62469  

Cash                                                                              125000

(Being Record the Second Lease Payment)  

You might be interested in
Suppose GDP in an economy is $3,542 billion. Personal Consumption Expenditures (C) are $2,343 billion, Government Spending (G) i
aleksandrvk [35]

Answer: -$45 billion.

Explanation:

Net Exports refers to Exports out of a country less imports into the country and it is a component of GDP using the Expenditure method. The other components include Government Spending, Investment and Consumption all of which are given in the above question.

The Net Exports are therefore;

GDP = Consumption + Investment + Government Spending + Net Exports

3,542 = 2,343 + 865 + 379 + Net Exports

3,542 = 3,587 + Net Exports

Net Exports = 3,542 - 3,587

Net Exports = -$45 billion

The Net Exports are negative which means that more goods were imported than were exported.

6 0
1 year ago
On the day his son was born, a father decided to establish a fund for his son's college education. The father wants the son to b
Contact [7]

Answer:

The amount of deposit is 369.77 dollars

Explanation:

We can calculate the amount of deposit using present value and the number of payment periods, which is 17. It tells us about the value of our future income as measured in today's dollars. Future value for all four years is 1600 dollars. Formula for present value is future value/(1+interest rate)^number of periods. In this case it will be 1600/1.09^17 or 1600/4.327 equals 369.77.

7 0
1 year ago
Carol was preparing for the next employee appraisal at her company. She already had her work accomplishments documented and read
Svetlanka [38]

Answer:

the ringht answer is C.

Explanation:

the accomplishment of goals in the organization that would help her in the summary of her personal characteristics because, they are all the contributions that she has offered to the company at a professional level to contribute in the good management of her processes

5 0
2 years ago
Read 2 more answers
Lori recently quit her job and decided to start her own company, which will sell makeup to small beauty salons. What should she
dedylja [7]

Lori has already decided she wants to sell beauty products and market them to small beauty salons. She now needs to decide how she wants to price her product so that the beauty salons will buy it. Option B. decide how to price her product is the next step that Lori should take. After she decided the price, she will have the what, where and how much and then she can move on to how she will advertise her product to the small beauty stores.

5 0
1 year ago
Read 2 more answers
Ms. Frank is planning for a 25-year retirement period and wishes to withdraw a portion of her savings at the end of each year. S
alina1380 [7]

Answer:

I guess the interest rates are 9.10% and 7% per year.

a) $173,369.67

b) $217,212.31

Explanation:

the total distributions received by Ms. Frank are:

year distribution  

1 10000

2 11000

3 12000

4 13000

5 14000

6 15000

7 16000

8 17000

9 18000

10 19000

11 20000

12 21000

13 22000

14 23000

15 24000

16 25000

17 26000

18 27000

19 28000

20 29000

21 30000

22 31000

23 32000

24 33000

25 34000

Using excel, I calculated the present value of this annuity using the different discount rates (using present value function)

a) $173,369.67

b) $217,212.31

8 0
2 years ago
Other questions:
  • When carter first moved into his neighborhood, he noticed hundreds of frogs on the roads after a rain storm. lately, carter has
    12·2 answers
  • Your boss has given you permission to order new office supplies answer
    6·2 answers
  • Suppose the market for tortillas is initially in equilibrium, but then the equilibrium wage rate and the equilibrium quantity of
    10·1 answer
  • Cruz Company uses LIFO for inventory costing and reports the following financial data. It also recomputed the inventory and cost
    15·1 answer
  • On January 2, year 5 Ral Co. leased land and a building from an unrelated lessor for a 10-year term. The lease has a renewal opt
    6·1 answer
  • The Commerce Ministry of a country conducts regular surveys on goods and services sold within the country. Researchers at the Mi
    12·1 answer
  • CCC Corp has a beta of 1.5 and is currently in equilibrium. The required rate of return on the stock is 12.00% versus a required
    15·1 answer
  • On May 18th, you purchased 1,000 shares of Buy Lo stock. On June 5th, you sold 200 shares of this stock for $21 a share. You sol
    15·1 answer
  • Soap Company manufactures soap X and soap Y and can sell all it can make of either. Hours available to produce the products are
    6·1 answer
  • A consumer values a car at $20000 and it costs a producer $15000 to make the same car. If the transaction is completed at $18000
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!