Mack County has acquired equipment through a non-cancelable lease-purchase agreement dated December 31, 2017. This agreement requires
Question:
1. What account should be debited for $120,000 in the general fund at inception of the lease if the equipment is a general fixed asset and Mack does not use a capital projects fund?
2. What account should be credited for $120,000 in the general fixed assets account group at inception of the lease if the equipment is a general fixed asset?
3. What journal entry is required for $120,000 in the general long-term debt account group at inception of the lease if the lease payments are to be financed with general government resources?
Transcribed Image Text:
December 2018 2019 2020 Principal $40,000 40,000 40,000 Interest $12,000 7,000 2,000 Total $52,000 47,000 42,000
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 64% (17 reviews)
1 Expenditures 2 Investment in ...View the full answer
Answered By
Saikumar Ramagiri
Financial accounting:- Journal and ledgers, preparation of trail balance and adjusted trail balance Preparation of income statement, retained earning statement and balance sheet Banks reconciliation statements Financial statement analysis Cash flow statement analysis (both direct and indirect methods) All methods of Depreciations Management Accounting:- Ratios Budgeting control Cash budget and production budget Working capital management Receivable management Costing:- Standard and variance costing Marginal costing and decision making Cost-volume-profit analysis Inventory management (LIFO, FIFO) Preparation and estimation of cost sheet Portfolio management:- Calculation of portfolio standard deviation or risk Calculation of portfolio expected returns CAPM, Beta Financial management:- Time value of money Capital budgeting Cost of capital Leverage analysis and capital structure policies Dividend policy Bond value calculations like YTM, current yield etc International finance:- Derivatives Futures and options Swaps and forwards Business problems Finance problems Education (mention all your degrees, year awarded, Institute/University, field(s) of major): Education Qualification Board/Institution/ University Month/Year of Passing % Secured OPTIONALS/ Major ICWAI(inter) ICWAI inter Pursuing Pursuing - M.com(Finance) Osmania University June 2007 65 Finance & Taxation M B A (Finance) Osmania University Dec 2004 66 Finance & Marketing. B.Com Osmania University June 2002 72 Income Tax, Cost & Mgt, Accountancy, Auditing. Intermediate (XII) Board of Intermediate May 1999 58 Mathematics, Accountancy, Economics. S S C (X) S S C Board. May 1997 74 Mathematics, Social Studies, Science. Tutoring experience: • 10 year experience in online trouble shooting problems related to finance/accountancy. • Since 6 Years working with solution inn as a tutor, I have solved thousands of questions, quick and accuracy Skills (optional): Technical Exposure: MS Office, SQL, Tally, Wings, Focus, Programming with C Financial : Portfolio/Financial Management, Ratio Analysis, Capital Budgeting Stock Valuation & Dividend Policy, Bond Valuations Individual Skills : Proactive Nature, Self Motivative, Clear thought process, Quick problem solving skills, flexible to complex situations. Achievements : 1. I have received an Award certificate from Local Area MLA for the cause of getting 100% marks in Accountancy during my Graduation. 2. I have received a GOLD MEDAL/Scholarship from Home Minister in my MBA for being the “Top Rank student “ of management institute. 3. I received numerous complements and extra pay from various students for trouble shooting their online problems. Other interests/Hobbies (optional): ? Web Surfing ? Sports ? Watching Comics, News channels ? Miniature Collection ? Exploring hidden facts ? Solving riddles and puzzles
4.80+
391+ Reviews
552+ Question Solved
Related Book For
Advanced Accounting
ISBN: 978-0538480284
11th edition
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng
Question Posted:
Students also viewed these Accounting questions
-
A governments unassigned fund balance in the general fund at year-end should be indicative of the amount that the government has available for appropriation in future years. Explain and provide an...
-
What account should be debited for transportation charges related to equipment purchases?
-
Oliver Furnishings frequendy has sales involving no down payment and no payments for three months. Three months after the purchase date, customers make four equal monthly payments (i.e., they make...
-
Each team member is to become an expert on one depreciation method to facilitate teammates' understanding of that method. Follow these procedures: a. Each team member is to select an area of...
-
The CEO of the Brandon Marketing Group announces that all employees must take a 5% cut in pay this year, but they will all get a 5% raise next year, so the salaries will then be the same as they are...
-
In comparing the translation and the re measurement process, which of the following is true? a. The reported balance of inventory is normally the same under both methods. b. The reported balance of...
-
XYZ Corporation has \($500\) million in zero coupon debt outstanding, due in five years. The firm had earnings before interest and taxes of \($40\) million in the most recent year (the tax rate is...
-
Abbott Work Wear, Inc., supplies uniforms for a variety of businesses. Greg Michaels is a new intern in the Accounting Department at Abbott. To expand sales, the company is considering paying...
-
ROI, Residual Income Raddington Industries produces tool and die machinery for manufacturers. The company expanded vertically in 20x1 by acquiring one of its suppliers of alloy steel plates, Keimer...
-
Create a sequential circuit that implements 4 bit unsigned division following the design of the sequential divider seen in class. Your circuit will have a RESET input. On a rising clock edge, when...
-
Hollander City maintains a defined benefit pension plan for its employees. In a recent year, the city contributed $12 million to its pension fund. However, its annual required contribution as...
-
Prepare journal entries to record the following events using the general fund and the general fixed assets account group: a. The general fund vouchered the purchase of trucks for $80,000. The...
-
Based on Problem 2-9B, prepare a statement of owners equity for David Segal for the month of October 20--.
-
5.15 Water is added to the tank shown in Fig. P5.15 through a verti- cal pipe to maintain a constant (water) level. The tank is placed on a horizontal plane which has a frictionless surface....
-
Calculate the cost of debt. Calculate the cost of equity. Calculate the weight of debt and equity. Calculate the WACC. Table 4 Stock Info Amount Bond Info Amount Shares Outstanding 100 Face value...
-
Please help with at least three or more sources for a three to four page paper. Topic is soil compaction and stabilization. This is for soil mechanics for construction class.
-
Simplify. - 2[a 9(52a)]
-
How many processes are created by the following program, including the initial process. (.5 Marks) #include #include int main() { int i; for (i=0; i <5; i++) fork(); return 0; ANSWER:
-
In 2016, $53 billion of frozen foods were sold in U.S. grocery stores, one quarter of it in the form of frozen dinners and entres. In the mid-1950s, sales of frozen foods amounted to only $1 billion,...
-
Synthesize the products by drawing out reagents and intermediates along the way. `N H. OH HO HO
-
A laser beam has a radius of \(1 \mathrm{~mm}\). How powerful does the laser have to be for the maximum magnitude of the magnetic field in the beam to be \(4 \mu \mathrm{T}\) ?
-
Par Corporation and its 100 percent-owned subsidiary, Sam Corporation, are members of an affiliated group with pretax accounting incomes as follows (in thousands): The gain reported by Par relates to...
-
Pan Corporation paid $577,500 cash for a 70 percent interest in Sir Corporation's outstanding common stock on January 2, 2011, when the equity of Sir consisted of $500,000 common stock and $300,000...
-
Taxable incomes for Pub Corporation and Sew Corporation, its 70 percent-owned subsidiary, for 2011 are as follows (in thousands): ADDITIONAL INFORMATION1. Pub acquired its interest in Sew at a fair...
-
Review | Constants An oil tanker spills a large amount of oil (n = 1.45) into the sea (n = 1.35). (a) If you look down onto the oil spill from overhead, what predominant wavelength of light do you...
-
Lees Home Goods, which sells home decor items, had $150,000 of cost of goods sold during the month of October. The company projects an 8 percent increase in cost of goods sold during November. The...
-
Review | Constants Monochromatic light of wavelength 580 nm passes through a single slit and the diffraction pattern is observed on a screen. Both the source and screen are far enough from the slit...
Study smarter with the SolutionInn App