Business, 15.02.2021 20:30 Ashley606hernandez

Sheridan Company, a machinery dealer, leased a machine to Dexter Corporation on January 1, 2020. The lease is for an 8-year period and requires equal annual payments of $31,448 at the beginning of each year. The first payment is received on January 1, 2020. Sheridan had purchased the machine during 2016 for $116,000. Collectibility of lease payments by Sheridan is probable. Sheridan set the annual rental to ensure a 6% rate of return. The machine has an economic life of 10 years with no residual value and reverts to Sheridan at the termination of the lease. 1. Compute the amount of the lease receivable.
2. Prepare all necessary journal entries for Sheridan for 2020.
3. Suppose the collectibility of the lease payments was not probable for Sheridan. Prepare the necessary journal entry for the company in 2020.
4. Suppose at the end of the lease term, Sheridan receives the asset and determines that it actually has a fair value of $980 instead of the anticipated residual value of $0. Record the entry to recognize the receipt of the asset for Sheridan at the end of the lease term.

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 05:50

Which is one solution to levy the complexity of the global matrix strategy with added customer-focused dimensions?

Answers: 3

Answer

Business, 22.06.2019 10:30

The rybczynski theorem describes: (a) how commodity price changes influence real factor rewards (b) how commodity price changes influence relative factor rewards. (c) how changes in factor endowments cause changes in commodity outputs. (d) how trade leads to factor price equalization.

Answers: 1

Answer

Business, 22.06.2019 11:00

Factors like the unemployment rate,the stock market,global trade,economic policy,and the economic situation of other countries have no influence on the financial status of individuals. true or false

Answers: 1

Answer

Business, 22.06.2019 17:40

To appeal to a new target market, the maker of hill's coffee has changed the product's package design, reformulated the coffee, begun advertising price discounts in women's magazines, and started distributing the product through gourmet coffee shops. what has been changed? a. the product's perceptual value. b.the product's 4ps. c. the method used in its target marketing. d. the ownership of the product line. e. the product's utility.

Answers: 3

Answer

You know the right answer?

Sheridan Company, a machinery dealer, leased a machine to Dexter Corporation on January 1, 2020. The...

Questions