Business, 21.05.2020 00:16 miya214

Teal Steel Company, as lessee, signed a lease agreement for equipment for 5 years, beginning December 31, 2020. Annual rental payments of $53,000 are to be made at the beginning of each lease year (December 31). The interest rate used by the lessor in setting the payment schedule is 7%; Teal’s incremental borrowing rate is 9%. Teal is unaware of the rate being used by the lessor. At the end of the lease, Teal has the option to buy the equipment for $5,000, considerably below its estimated fair value at that time. The equipment has an estimated useful life of 7 years, with no salvage value. Teal uses the straight-line method of depreciation on similar owned equipment.
InstructionsA) Prepare the journal entries, that should be recorded on January 1, and December 31, 2017, by Steel. B) Prepare the journal entries, that should be recorded on January 1 and December 31, 2018, by Steel. (Prepare the lease amortization schedule for all five payments.)C) Prepare the journal entries, that should be recorded on January 1, and December 31, 2019, by Steel. D) What amounts would appear on Steel's December 31, 2019, balance sheet relative to the lease arrangement?

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 00:50

Hanna intends to give her granddaughter, melodee, her antique hat pin. this heirloom has been kept under lock and key in the wall vault in the library of hanna's house in virginia. the hat pin is currently the only item in the vault. when hanna is visiting melodee in connecticut, hanna gives melodee the only key to the vault. melodee is grateful for the present and excitedly accepts. in this situation has there been a completed gift?

Answers: 3

Answer

Business, 22.06.2019 13:10

Lin corporation has a single product whose selling price is $136 per unit and whose variable expense is $68 per unit. the company’s monthly fixed expense is $32,400. required: 1. calculate the unit sales needed to attain a target profit of $5,000. (do not round intermediate calculations.) 2. calculate the dollar sales needed to attain a target profit of $8,400.

Answers: 3

Answer

Business, 22.06.2019 19:10

Below are the steps in the measurement process of external transactions. arrange them from first (1) to last (6). event step post transactions to the general ledger. assess whether the transaction results in a debit or credit to account balances. use source documents to identify accounts affected by an external transaction. analyze the impact of the transaction on the accounting equation. prepare a trial balance. record the transaction in a journal using debits and credits.

Answers: 3

Answer

Business, 22.06.2019 19:50

Aproperty title search firm is contemplating using online software to increase its search productivity. currently an average of 40 minutes is needed to do a title search. the researcher cost is $2 per minute. clients are charged a fee of $400. company a's software would reduce the average search time by 10 minutes, at a cost of $3.50 per search. company b's software would reduce the average search time by 12 minutes at a cost of $3.60 per search. which option would have the higher productivity in terms of revenue per dollar of input?

Answers: 1

Answer

You know the right answer?

Teal Steel Company, as lessee, signed a lease agreement for equipment for 5 years, beginning Decembe...

Questions