Python Company leased equipment from Hope Leasing on January 1, 2011. Hope purchased the equipment at a
Question:
There is no expected residual value.
Required:
Prepare appropriate journal entries for Python for 2011. Assume straight-line depreciation and a December 31year-end.
Other information Lease term Annual payments Life of asset Fair value of asset Implicit interest rate Incremental rate 3 years $80,000 on January 1 each year 3 years $222,666 8% 8%
Step by Step Answer:
Computation of the Journal Entries for python for 201...View the full answer
Accounting Principles Part 2
ISBN: 978-1118306796
6th Canadian edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow
Related Video
In accounting terms, depreciation is defined as the reduction of the recorded cost of a fixed asset in a systematic manner until the value of the asset becomes zero or negligible. An example of fixed assets are buildings, furniture, office equipment, machinery, etc. The land is the only exception that cannot be depreciated as the value of land appreciates with time. Depreciation allows a portion of the cost of a fixed asset to be the revenue generated by the fixed asset. This is mandatory under the matching principle as revenues are recorded with their associated expenses in the accounting period when the asset is in use. This helps in getting a complete picture of the revenue
Students also viewed these Accounting questions
-
c) For k = 1,2, 3, ... Ck = {(x, y); 0 y 2, (2+1/k) x y -(2/3+1/k) (x-4).} What is the area of lim o C in this case? ) 710%
-
c) For k = 1,2, 3, ... Ck = {(x, y); 0 y 2, (2+1/k) x y -(2/3+1/k) (x-4).} What is the area of lim o C in this case? ) 710%
-
Equipment acquired on January 3, 2007, at a cost of $265,500, has an estimated useful life of eight years and an estimated residual value of $31,500. (a) What was the annual amount of depreciation...
-
Regulation imperial soccer fields have a length of 91 meters and a width of 39 meters. Show that during a friendly match there are always two players that are not farther from each other than 19...
-
Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging players a monthly subscription of $15. At the start of 2013, VGC's income statement accounts had zero balances...
-
The following diagram describes the hypothetical demand and supply for canned tuna in Canada in 2013. a. Suppose the price of a can of tuna is $4.00. What is the quantity demanded? What is the...
-
Recording Purchases and Sales} Printer Supply Company sells computer printers and printer supplies. One of its products is a toner cartridge for laser printers. At the beginning of 2018, there were...
-
The production schedule at Mazda calls for 1,200 Mazdas to be produced during each of 22 production days in January and 900 Mazdas to be produced during each of 20 production days in February Mazda...
-
Solve by reduction the following systems of equations: 1-
-
Silver Lining, Inc., provides investment advisory services. The company adjusts its accounts monthly, but performs closing entries annually on December 31. The firm's unadjusted trial balance dated...
-
On January 1, 2011, Salvatore Company leased several machines from Nola Corporation under a 3-year operating lease agreement. The lease calls for semiannual payments of $15,000 each, payable on June...
-
Molina Company's reported net incomes for 2011 and the previous two years are presented below. 2011 2010 2009 $105,000 $95,000 $70,000 2011's net income was properly determined after giving effect to...
-
Consider an interface public interface NumberFormatter { String format(int n); } Provide four classes that implement this interface. A DefaultFormatter formats an integer in the usual way. A...
-
Saul Goodman after years of struggling, founded a law firm wherein he is the sole practicing attorney. Through ten years of hustling and hard work, Saul Goodman has a loyal clientele, servicing a...
-
I have entered the input multiple times but I keep getting an error. Can you review and see what I am doing wrong? For this assignment, you are given two complex numbers. You will print the result of...
-
How do the principles of deontological ethics and consequentialist ethics differ in guiding moral actions, and what are the implications of each framework in resolving complex moral dilemmas ?
-
The following information was extracted from the first year absorption-based accounting records of Enigma Corporation Total fixed costs incurred P100,000 Total variable costs incurred 50,000 Total...
-
Matthew and Miriam married in 1960 at 18 and 19 respectively, and had seven children, Marsha, Marcus, Mindy, Michelle, Madison,Mason, and Maverick. Marsha is single and never birthed any children....
-
Determine the state of steam at : (a) \(p=14\) bar and \(t=210^{\circ} \mathrm{C}\), and (b) \(p=8\) bar and \(2700 \mathrm{~kJ} / \mathrm{kg}\) of heat supplied to water from
-
Imagine a sound wave with a frequency of 1.10 kHz propagating with a speed of 330 m/s. Determine the phase difference in radians between any two points on the wave separated by 10.0 cm.
-
Write a paper on the invention of the first electronic computer.
-
Why is the revenue recognition principle needed? What does it demand?
-
Describe the three basic forms of business organization and their key attributes.
-
Describe the three basic forms of business organization and their key attributes.
-
Based on the following data, determine the total assets, total liabilities, net worth, total cash inflows, and total cash outflows.
-
Cane Company manufactures two products called Alpha and Beta that sell for $ 2 2 5 and $ 1 7 5 , respectively. Each product uses only one type of raw material that costs $ 6 per pound. The company...
-
For its fiscal year ending October 3 1 , 2 0 2 2 , Sheridan Corporation reports the following partial data.. \ table [ [ Income before income taxes,$ 5 0 5 , 0 0 0
Study smarter with the SolutionInn App