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***EDIT*** PROBLEM DIDNT UPLOAD BUT IS THERE NOW
I NEED ANSWERED ASAP
first pic is the problem and second pic is the info needed to solve the problem
= X 1 Enter your answer by typing ONLY in column "C". When your sentence reaches column "K" and 2 you have more to say, continue on the next line in column "C". 3 -4 Part 3 Do Appendix B Problem.B.6 (Create -160, page 816) Capital Leases 5 Only do parts c.and d., however, use salvage value from "b.4.": 56 Deduct (1) for wrong out of 40 Interstate Van Lines 57 Carrying Value of Lease and Lease Pay Obligation as of Dec 31st 58 c) Carrying Value as of December 31st (undepreciated value of leased equipment) 59 Sales Salvage Amt. to Period in Monthly 60 price (PV) value depreciate months 61 depreciation 62 63 64 Sales Monthly Periods Net Carrying 65 price (PV) depreciation depreciated Value 66 Current book value 67 68 69 d) Lease obligation December 31st 70 Month Lease Balance Monthly Reduce Unpaid 71 of pay Payment of lease* interest obligation balance 72 Reduction of Lease Obligation by Month: 73 November Beginning of lease - lease obligation = 74 Round up interest calculation Nov 30th 75 76 77 December Beginning of month lease obligation 78 Round up interest calculation Dec 31st 79 ( $0 D 80 * End of prior month 81 82. 83 84 85 = $930,000 to LOB-3, LOB-5, LOB-6 PROBLEM B.6 Capital Leases: A Comprehensive Problem Custom Truck Builders frequently uses long-term lease contracts to finance the sale of its trucks On November 1, 2015, Custom Truck Builders leased to Interstate Van Lines a truck carried in the perpetual inventory records at $33,520. The terms of the lease call for Interstate Van Lines to wake payments, after considering a built-in interest charge of 1 percent per month, is equal to the regde 36 monthly payments of $1,400 each, beginning on November 30, 2015. The present value of these $42,150 sales price of the truck. At the end of the 36-month lease, title to the truck will transfert 2. November 30, to record the first monthly lease payment. (Determine the portion of it payment representing interest expense in a manner parallel to that described in part 2 4. December 31, to recognize depreciation on the leased truck through year-end. Compra depreciation expense by the straight-line method, using a 10-year service life and an art c. Compute the net carrying value of the leased truck in the balance sheet of Interstate Van Lite d. Compute the amount of Interstate Van Lines's lease payment obligation at December 31, Interstate Van Lines Instructions a. Prepare journal entries for 2015 in the accounts of Custom Truck Builders on: 1. November 1, to record the sale financed by the lease and the related cost of goods sold (Debit Lease Payments Receivable for the $42,150 present value of the future lease payments.) 2. November 30, to record receipt of the first $1,400 monthly payment. (Prepare a compound journal entry that allocates the cash receipt between interest revenue and reduction of Lease Payments Receivable. The portion of each monthly payment recognized as interes revenue is equal to 1 percent of the balance of the account Lease Payments Receivable. If the beginning of that month. Round all interest computations to the nearest dollar) 3. December 31, to record receipt of the second monthly payment. b. Prepare journal entries for 2015 in the accounts of Interstate Van Lines on: 1. November 1, to record acquisition of the leased truck. 3. December 31, to record the second monthly lease payment. mated salvage value of $6,150. at December 31, 2015. LOB-5, LOB-6 PROBLEM B.7 Valuation of a Note Receitahu On December 31, Richland Farms sold art Developers in exchange for Interest 1
