yellowmiki6647
16.03.2020 •
Business
On January 1, Garcia Supply leased a truck for a three-year period, at which time possession of the truck will revert back to the lessor. Annual lease payments are $13,500 due on December 31 of each year, calculated by the lessor using a 4% discount rate. Negotiations led to Garcia guaranteeing a $35,800 residual value at the end of the lease term. Garcia estimates that the residual value after four years will be $34,100. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) What is the amount to be added to the right-of-use asset and lease liability under the residual value guarantee?
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Ответ:
Solution:
Step 1: Calculate present value of the lease payments
i=4%
n=63
amount= 13,500
$13,500 x 5.32948= $ 71,947
Initial balance, January 1 (calculated above) $71,947
Reduction for first payment, January 1 (13,500 )
December 31, net liability $113,731
Step 2:
dr Interest expense (4% x [$71,947- 13,500 ]) 66,547
cr Interest payable 66,547
Ответ:
These answer choices are correct:
a) Different companies use different charts of accounts based on individual company need.
The chart of accounts is the list of all the accounts that a company uses over a period of time. Because each company has a different economic and operating activity, each company's chart of accounts is unique.
b) The chart of accounts contains the balance of all of the accounts in a ledger
c) The chart of accounts should be ordered in a logical sequence based on type of account
The chart of accounts includes all the acounts of the ledger, and it also is organized following a logical sequence. Assets, Liabilities, Stockholders' Equity, and their corresponding subdivisions, is usually the order of organization.