I NEED HELP FIGURING OUT 2 D Leased Assets Koffman and Sons signed a four year lease for a forklift on January 1, 2014 Annual lease payments of $1,510, based on an interest rate of 8 , are to be made every December 31, beginning with December 31, 2014 Required Refer to the table above for present value factors 1 Assume that the lease is treated as an operating lease a Will the value of the forklift appear on Koffman's balance sheet Select your answer YesNoCorrect 1 of Item 1 b What account will indicate that lease payments have been made Select your answer Interest expenseLease expenseLease obligationBoth the Interest Expense and Lease Obligation accountsCorrect 2 of Item 1 Hide Feedback Correct Check My Work Feedback From the viewpoint of the lessee, there are two types of lease agreements operating and capital In an operating lease, the lessee acquires the right to use an asset for a limited period of time The lessee is not required to record the right to use the property as an asset or to record the obligation for payments as a liability 2 Assume that the lease is treated as a capital lease a Identify and analyze the effect when the lease is signed Activity Select your answer OperatingInvestingFinancingInvesting and FinancingCorrect 1 of Item 2 Accounts Select your answer Leased Asset Increase, Lease Liability IncreaseLeased Asset Increase, Lease Liability DecreaseLeased Asset Decrease, Lease Liability IncreaseLeased Asset Decrease, Lease Liability DecreaseCorrect 2 of Item 2 Statement(s) Select your answer Balance Sheet onlyIncome Statement onlyBalance Sheet and Income StatementCorrect 3 of Item 2 Hide Feedback Correct Check My Work Feedback Capital leases give the lessee sufficient rights of ownership and control of the property, and are recorded as an asset and depreciated The present value of the lease payments is recorded as an asset and liability and interest expense is recorded each period based on the remaining obligation times the effective interest rate Identify and analyze the transaction by using the following steps 1 Determine activity operating, investing or financing 2 Determine accounts affected and the amount of increases decreases 3 Determine the financial statements affected balance sheet, income statement The accounting equation must balance for each transaction How does this entry affect the accounting equation If a financial statement item is not affected, select No Entry and leave the amount box blank If the effect on a financial statement item is negative, i e, a decrease, be sure to enter the answer with a minus sign Round answers to the nearest whole dollar Balance Sheet Income Statement Assets Liabilities Stockholders' Equity Revenues Expenses Net Income Select your answer CashLease LiabilityLeased AssetLeased Asset ExpenseRent ExpenseNo EntryCorrect 1 of Item 3 Select your answer CashInterest PayableLease LiabilityLeased AssetLeased Asset ExpenseNo EntryCorrect 3 of Item 3 Select your answer CashInterest PayableLease LiabilityLeased AssetLeased Asset ExpenseNo EntryCorrect 6 of Item 3 Select your answer CashLease LiabilityLeased AssetLeased Asset ExpenseRent ExpenseNo EntryCorrect 8 of Item 3 Hide Feedback Correct b Identify and analyze the effect of the first lease payment on December 31, 2014 Activity Select your answer OperatingInvestingFinancingOperating and FinancingCorrect 1 of Item 4 Accounts Select your answer Cash Increase, Lease Liability Decrease, Interest Expense IncreaseCash Increase, Lease Liability Decrease, Interest Expense DecreaseCash Decrease, Lease Liability Decrease, Interest Expense IncreaseCash Decrease, Lease Liability Decrease, Interest Expense DecreaseCorrect 2 of Item 4 Statement(s) Select your answer Balance Sheet onlyIncome Statement onlyBalance Sheet and Income StatementCorrect 3 of Item 4 Hide Feedback Correct Check My Work Feedback Identify and analyze the transaction by using the following steps 1 Determine activity operating, investing or financing 2 Determine accounts affected and the amount of increases decreases 3 Determine the financial statements affected balance sheet, income statement The accounting equation must balance for each transaction Determine amortization using the effective interest method (see Exhibit 10 7) Column 1 is the total amount of the payment To compute the interest expense, (column 2) multiply the lease obligation (column 4) by the interest rate Column 3, the reduction of obligation is computed by subtracting Column 2 from column 1 Column 4 starts out as the present value of the lease obligation This column is then reduced by the amount in column 3 How does this entry affect the accounting equation If a financial statement item is not affected, select No Entry and leave the amount box blank If the effect on a financial statement item is negative, i e, a decrease, be sure to enter the answer with a minus sign Round answers to the nearest whole dollar Balance Sheet Income Statement Assets Liabilities Stockholders' Equity Revenues Expenses Net Income Select your answer CashInterest ExpenseInterest PayableInterest RevenueLeased AssetNo EntryCorrect 1 of Item 5 Select your answer CashLease LiabilityLeased AssetLeased Asset ExpenseRent ExpenseNo EntryCorrect 3 of Item 5 Select your answer CashLease LiabilityLeased AssetLeased Asset ExpenseRent ExpenseNo EntryCorrect 6 of Item 5 Select your answer CashInterest ExpenseInterest PayableInterest RevenueLeased AssetNo EntryCorrect 8 of Item 5 Hide Feedback Correct c Calculate the amount of depreciation expense for the year 2014 Round answer to the nearest whole dollar $ d At what amount would the lease obligation be presented on the balance sheet as of December 31, 2014 Round answers to the nearest whole dollar Current liability portion $ Long term liability portion $

Question

I NEED HELP FIGURING OUT  2 D Leased Assets Koffman and Sons signed a four year lease for a forklift on January 1, 2014  Annual lease payments of $1,510, based on an interest rate of 8 , are to be made every December 31, beginning with December 31, 2014  Required  Refer to the table above for present value factors  1  Assume that the lease is treated as an operating lease  a  Will the value of the forklift appear on Koffman's balance sheet    Select your answer  YesNoCorrect 1 of Item 1 b  What account will indicate that lease payments have been made    Select your answer  Interest expenseLease expenseLease obligationBoth the Interest Expense and Lease Obligation accountsCorrect 2 of Item 1 Hide Feedback Correct Check My Work Feedback From the viewpoint of the lessee, there are two types of lease agreements  operating and capital  In an operating lease, the lessee acquires the right to use an asset for a limited period of time  The lessee is not required to record the right to use the property as an asset or to record the obligation for payments as a liability  2  Assume that the lease is treated as a capital lease  a  Identify and analyze the effect when the lease is signed  Activity   Select your answer  OperatingInvestingFinancingInvesting and FinancingCorrect 1 of Item 2 Accounts   Select your answer  Leased Asset Increase, Lease Liability IncreaseLeased Asset Increase, Lease Liability DecreaseLeased Asset Decrease, Lease Liability IncreaseLeased Asset Decrease, Lease Liability DecreaseCorrect 2 of Item 2 Statement(s)   Select your answer  Balance Sheet onlyIncome Statement onlyBalance Sheet and Income StatementCorrect 3 of Item 2 Hide Feedback Correct Check My Work Feedback Capital leases give the lessee sufficient rights of ownership and control of the property, and are recorded as an asset and depreciated  The present value of the lease payments is recorded as an asset and liability and interest expense is recorded each period based on the remaining obligation times the effective interest rate  Identify and analyze the transaction by using the following steps  1  Determine activity operating, investing or financing  2  Determine accounts affected and the amount of increases decreases  3  Determine the financial statements affected balance sheet, income statement  The accounting equation must balance for each transaction  How does this entry affect the accounting equation  If a financial statement item is not affected, select  No Entry  and leave the amount box blank  If the effect on a financial statement item is negative, i e, a decrease, be sure to enter the answer with a minus sign  Round answers to the nearest whole dollar  Balance Sheet Income Statement Assets   Liabilities   Stockholders' Equity Revenues Expenses   Net Income   Select your answer  CashLease LiabilityLeased AssetLeased Asset ExpenseRent ExpenseNo EntryCorrect 1 of Item 3   Select your answer  CashInterest PayableLease LiabilityLeased AssetLeased Asset ExpenseNo EntryCorrect 3 of Item 3   Select your answer  CashInterest PayableLease LiabilityLeased AssetLeased Asset ExpenseNo EntryCorrect 6 of Item 3   Select your answer  CashLease LiabilityLeased AssetLeased Asset ExpenseRent ExpenseNo EntryCorrect 8 of Item 3 Hide Feedback Correct b  Identify and analyze the effect of the first lease payment on December 31, 2014  Activity   Select your answer  OperatingInvestingFinancingOperating and FinancingCorrect 1 of Item 4 Accounts   Select your answer  Cash Increase, Lease Liability Decrease, Interest Expense IncreaseCash Increase, Lease Liability Decrease, Interest Expense DecreaseCash Decrease, Lease Liability Decrease, Interest Expense IncreaseCash Decrease, Lease Liability Decrease, Interest Expense DecreaseCorrect 2 of Item 4 Statement(s)   Select your answer  Balance Sheet onlyIncome Statement onlyBalance Sheet and Income StatementCorrect 3 of Item 4 Hide Feedback Correct Check My Work Feedback Identify and analyze the transaction by using the following steps  1  Determine activity operating, investing or financing  2  Determine accounts affected and the amount of increases decreases  3  Determine the financial statements affected balance sheet, income statement  The accounting equation must balance for each transaction  Determine amortization using the effective interest method (see Exhibit 10 7)  Column 1 is the total amount of the payment  To compute the interest expense, (column 2) multiply the lease obligation (column 4) by the interest rate  Column 3, the reduction of obligation is computed by subtracting Column 2 from column 1  Column 4 starts out as the present value of the lease obligation  This column is then reduced by the amount in column 3  How does this entry affect the accounting equation  If a financial statement item is not affected, select  No Entry  and leave the amount box blank  If the effect on a financial statement item is negative, i e, a decrease, be sure to enter the answer with a minus sign  Round answers to the nearest whole dollar  Balance Sheet Income Statement Assets   Liabilities   Stockholders' Equity Revenues Expenses   Net Income   Select your answer  CashInterest ExpenseInterest PayableInterest RevenueLeased AssetNo EntryCorrect 1 of Item 5   Select your answer  CashLease LiabilityLeased AssetLeased Asset ExpenseRent ExpenseNo EntryCorrect 3 of Item 5   Select your answer  CashLease LiabilityLeased AssetLeased Asset ExpenseRent ExpenseNo EntryCorrect 6 of Item 5   Select your answer  CashInterest ExpenseInterest PayableInterest RevenueLeased AssetNo EntryCorrect 8 of Item 5 Hide Feedback Correct c  Calculate the amount of depreciation expense for the year 2014  Round answer to the nearest whole dollar  $ d  At what amount would the lease obligation be presented on the balance sheet as of December 31, 2014  Round answers to the nearest whole dollar  Current liability portion $ Long term liability portion $

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I NEED HELP FIGURING OUT #2 D Leased Assets Koffman and Sons signed a four-year lease for a forklift on January 1, 2014. Annual lease

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Activity	- Select your answer -OperatingInvestingFinancingInvesting and FinancingCorrect 1 of Item 2
Accounts	- Select your answer -Leased Asset Increase, Lease Liability IncreaseLeased Asset Increase, Lease Liability DecreaseLeased Asset Decrease, Lease Liability IncreaseLeased Asset Decrease, Lease Liability DecreaseCorrect 2 of Item 2
Statement(s)	- Select your answer -Balance Sheet onlyIncome Statement onlyBalance Sheet and Income StatementCorrect 3 of Item 2