Business, 12.10.2020 01:01 jina18

On January 1, 2021, Worcester Construction leased International Harvester equipment from Newton LeaseCorp. Newton LeaseCorp purchased the equipment from Wellesley Harvester at a cost of $974,790. Worcester's borrowing rate for similar transactions is 11%. The lease agreement specified four annual payments of $214,000 beginning January 1, 2021, the beginning of the lease, and on each December 31 thereafter through 2023. The useful life of the equipment is estimated to be six years. The present value of those four payments at a discount rate of 11% is $736,955. On January 1, 2023 (after two years and three payments), Worcester and Newton agreed to extend the lease term by two years. The market rate of interest at that time was 10%. Required: 1. Prepare the appropriate entries for Worcester Construction on January 1, 2023, to adjust its lease liability for the lease modification. 2. Prepare all appropriate entries for Newton LeaseCorp on January 1, 2023, to record the lease modification. 3. Prepare all appropriate entries for Worcester Construction on December 31, 2023, related to the lease. 4. Prepare all appropriate entries for Newton LeaseCorp on December 31, 2023, related to the lease.

Answers: 2

Show answers

Another question on Business

Business, 21.06.2019 16:10

Aldrich and co. sold goods to donovan on credit. the amount owed grew steadily, and finally aldrich refused to sell any more to donovan unless donovan signed a promissory note for the amount due. donovan did not want to but signed the note because he had no money and needed more goods. when aldrich brought an action to enforce the note, donovan claimed that the note was not binding because it had been obtained by economic duress. was he correct? [aldrich & co. v. donovan, 778 p.2d 397 (mont.)]

Answers: 1

Answer

Business, 22.06.2019 06:20

About time delivery co. incurred the following costs related to trucks and vans used in operating its delivery service: classify each of the costs as a capital expenditure or a revenue expenditure. 1. changed the oil and greased the joints of all the trucks and vans. 2. changed the radiator fluid on a truck that had been in service for the past four years. 3. installed a hydraulic lift to a van. 4. installed security systems on four of the newer trucks. 5. overhaul the engine on one of the trucks purchased three years ago. 6. rebuilt the transmission on one of the vans that had been driven 40,000 miles. the van was no longer under warranty. 7. removed a two-way radio from one of the trucks and installed a new radio with a greater range of communication. 8. repaired a flat tire on one of the vans. 9. replaced a truck's suspension system with a new suspension system that allows for the delivery of heavier loads. 10. tinted the back and side windows of one of the vans to discourage theft of contents.

Answers: 1

Answer

Business, 22.06.2019 11:20

Which stage of group development involves members introducing themselves to each other?

Answers: 3

Answer

Business, 22.06.2019 18:00

Match the different financial task to their corresponding financial life cycle phases

Answers: 3

Answer

You know the right answer?

On January 1, 2021, Worcester Construction leased International Harvester equipment from Newton Leas...