Details of this Paper

Complete the following exercise. Submit journal entries in an Excel file

Description

solution


Question

Question;Complete;the following exercise. Submit journal entries in an Excel file and;written segments in an MS Word document. Label each question clearly.;For written answers, please make sure your responses are well-written;formatted per CSU-Global guidelines for APA Style, and have proper;citation(s), if needed.Click here to download the Excel workbook containing the spreadsheets you will need for this exercise.Assume;that the following facts pertain to a noncancelable lease agreement;between Fifth-Third Leasing Company and Bob Evans Farms, a lessee.Inception date January 1, 2012Annual lease payment due at the beginning of each year, beginning with January 1, 2012 $81,365Residual value of equipment at end of lease term, guaranteed by the lessee $50,000Lease term 6 yearsEconomic life of leased equipment 6 yearsFair value of asset at January 1, 2012 $400,000Lessor?s implicit rate 12%Lessee?s incremental borrowing rate 12%The;lessee assumes responsibility for all executory costs, which are;expected to amount to $4,000 per year. The asset will revert to the;lessor at the end of the lease term. The lessee has guaranteed the;lessor a residual value of $50,000. The lessee uses the straight-line;depreciation method for all equipment.Using;the spreadsheet Lease Amort Schedule, prepare an amortization schedule;that would be suitable for the lessee for the lease term.Using;the spreadsheet Journal Entries, prepare the journal entries for the;lessee for 2012 and 2013 to record the lease agreement and all expenses;related to the lease. Assume the lessee?s annual accounting period ends;on December 31 and that reversing entries are used when appropriate.

 

Paper#39776 | Written in 18-Jul-2015

Price : $19
SiteLock