FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

On January 1, 2011, Hanlin Corporation agrees to lease a piece of equipment for an annual payment of $3,000 with the first payment being made

On January 1, 2011, Hanlin Corporation agrees to lease a piece of equipment for an annual payment of $3,000 with the first payment being made immediately. The lease will run for 4 years and the life of the equipment is 6 years. Hanlin's incremental borrowing rate is 9 percent. No bargain purchase option exists, the ownership of the equipment will not be transferred to Hanlin at the end of the lease, there is no alternative use for the asset, and the payments do not approximate the fair value of the equipment. 


What will be the entry made to record the first lease payment on January 1, 2011?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

To record the first lease payment on January 1 2011 we will make the following journal e... 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_2

Step: 3

blur-text-image_3

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

Intermediate Accounting
Intermediate Accounting

Authors: J. David Spiceland, James Sepe, Mark Nelson

6th edition

978-0077328894, 71313974, 9780077395810, 77328892, 9780071313971, 77395816, 978-0077400163

More Books

Students explore these related Accounting questions

Question

On January 1, 2016, Curran Manufacturing Corporation (CMC) agreed to lease a piece of heavy equipment to Oates Products, Inc. CMC paid $ 900,000 to manufacture the machine and carries it at this...

Answered: 3 weeks ago

Question

On January 1, 2016, Moorecraft Finance Company agreed to lease a piece of machinery o Ward Construction Products, Inc. Moorecraft paid $ 1,554,516 to acquire the machine from the manufacturer and...

Answered: 3 weeks ago

Question

On January 1, the lessor company purchased a piece of equipment for $6,000 as inventory. The lessor company immediately leased the equipment under a sales-type lease agreement. The lease calls for...

Answered: 3 weeks ago

Question

Suppose there are 50 companies in a commercial building. Initially there is no automatic fire sprinkler system in the public area of the building. Each company has identical individual demand curve...

Answered: 3 weeks ago

Question

When corporations issue liabilities (debt at a bank or bonds to the public), we assume that they do so at fair market rates. This implies that, on the day the liability is issued, the cash received...

Answered: 3 weeks ago

Question

3.9 To what extent have the accounting classifications become irrelevant because of international harmonization?

Answered: 3 weeks ago

Question

Describe Freuds approach to psychotherapy, making sure you cover topics such as transference, free association, and countertransference.

Answered: 3 weeks ago

Question

Ionic Charge, is a newly organized manufacturing business that plans to manufacture and sell 60,000 units per year of a new product. The following estimates have been made of the company's costs and...

Answered: 3 weeks ago

Question

Each unit requires 2 pounds of direct materials, which cost $ 6 per pound. The company's policy is to maintain direct materials inventory equal to 3 0 % of the next month's direct materials...

Answered: 3 weeks ago

Question

For the past year, Momsen, Ltd., had sales of $46,772, interest expense of $4,010, cost of goods sold of $17,009, selling and administrative expense of $11,956, and depreciation of $6,705. If the tax...

Answered: 3 weeks ago

Question

1 In MS SQL we can calculate the email address for our vendor contacts IF the vendor has their email domain value provided in the VendorUpdates_20230107 table (not all of them do!). Email addresses...

Answered: 3 weeks ago

Question

Which brand, if any, emerged as the favorite? How did you determine this? 2 . Is the favorite generally a popular brand, or were you surprised by the winner? 3 . If a consumer had a favorite before...

Answered: 3 weeks ago

Question

An employer in Seattle, Washington has started a new "healthy lifestyle" initiative for employees and indpendent contractors. The desired achievement for each group is a mean score of 25 on a...

Answered: 3 weeks ago

Question

Bintang Jaya Bhd operates two (2) production departments, Machining, and Assembly and two (2) service departments, Canteen and Store. Machining department is highly dependent on the use of machines,...

Answered: 3 weeks ago

Question

Henrik is stopped behind another vehicle at an intersection. The light turns green, and he waits 3-4 seconds before accelerating. Why should he do this?It puts adequate following distance between...

Answered: 3 weeks ago

Question

Problem: Give recursive definitions for the following sets. Demonstrate a derivation of at least one string in each language using your recursive definition. (For example, abab for set (a), 10100 for...

Answered: 3 weeks ago

Question

A 20-cm-square vertical plate is heated to a temperature of 30oC and submerged in glycerin at 10oC. Calculate the heat lost from both sides of the plate.

Answered: 3 weeks ago

Question

The DeVille Company reported pretax accounting income on its income statement as follows: Included in the income of 2011 was an installment sale of property in the amount of $50,000. However, for tax...

Answered: 3 weeks ago

Question

Mayfair Department Stores, Inc., operates over 30 retail stores in the Pacific Northwest. Prior to 2011, the company used the FIFO method to value its inventory. In 2011, Mayfair decided to switch to...

Answered: 3 weeks ago

Question

Mayfair Department Stores, Inc., operates over 30 retail stores in the Pacific Northwest. Prior to 2011, the company used the FIFO method to value its inventory. In 2011, Mayfair decided to switch to...

Answered: 3 weeks ago

Question

Describe the circumstances under which distributions from defined contribution plans are penalized. What are the penalties?

Answered: 3 weeks ago

Question

In 2014, Jill, age 35, received a job offer with two alternative compensation packages to choose from. The first package offers her $90,000 annual salary with no qualified fringe benefits, requires...

Answered: 3 weeks ago

Question

What nontax factor(s) should an employee consider when deciding whether and to what extent to participate in an employer's 401(k) plan?

Answered: 3 weeks ago

Previous Question Next Question