Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hi can i please get help from this? but the real question is the second picture D assyming the estimate of the expected payment at

Hi can i please get help from this?
image text in transcribed
but the real question is the second picture
image text in transcribed
D assyming the estimate of the expected payment at the end of the lease is correct, record the entry to settle the lease on December 21,2026
image text in transcribed
Ragnar Company leased a machine from Lagatha Leasing. The lease is for four years. The life of the asset is four years. The lease is non-cancelable. Ragnar's borrowing rate is 8% and knows Lagatha's earnings rate of 6%. The lease requires four payments at the beginning of each year of $100,000. There is a guaranteed residual value of $15,000, but Ragnar expects to return the asset with a worth of $10,000. The lease begins January 1,2023. Determine the cost to Ragnar using tables from Given that the residual value is guaranteed, determine the price from the sale. Record the sale and the first payment on January 1,2023. Ragnar Company leased a machine from Lagatha Leasing. The lease is for four years. The life of the asset is four years. The lease is non-cancelable. Ragnar's borrowing rate is 8% and knows Lagatha's earnings rate of 6%. The lease requires four payments at the beginning of each year of $100,000. There is a guaranteed residual value of $15,000, but Ragnar expects to return the asset with a worth of $10,000. The lease begins January 1,2023. Determine the cost to Ragnar using tables from Chapter 6 and prepare an amortiztion schedule below. Journalize the January 1,2023 inception of the lease and first payment. Assuming Ragnar uses straight line amortization, journalize the interest accrual and amortization for December 31,2023. Thefer to Problem 2. Lagatha's earnings rate is 6%. This lease is considered a sale of goods costing $75,000. Given that the residual value is guaranteed, determine the price from the sale. Record the sale and the first payment on lanuary 1,2023

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Software Reviews And Audits A How To Guide For Project Staff

Authors: Dr David Tuffley

1st Edition

1461130468, 978-1461130468

More Books

Students also viewed these Accounting questions

Question

=+14.4. 1 Let C be the set of continuity points of F.

Answered: 1 week ago

Question

explain the need for human resource strategies in organisations

Answered: 1 week ago

Question

describe the stages involved in human resource planning

Answered: 1 week ago