Description of this paper

Edison leased a snow plow from Frosty Auto/Truck leasing Inc

Description

solution


Question

Question;On August 10th, 2013 Edison leased a snow plow from Frosty Auto/Truck leasing Inc. The terms of the lease made it a capital lease. The annual lease payments were $30,000 for a six year lease, with the first payment due on August 10th, 2013. Edison's cost of capital is 10% and they depreciate vehicles straight line, no salvage value, 6 years.1. Record the journal entries for Edison to account for the lease on August 10th, 2013, their fiscal year end of June 30th, 2014, and payment on August 10th, 2014.2. How much expense would Edison report on their annual income statement July 1, 2013 to June 30, 20143. Show the partial accounts (with balances) that would be reported on Edison's balance sheet, June 30th, 2014 related to the lease.On August 10th, 2013, Snow Plows "R" "US" leased a snow plow to Edison. The terms of the lease made it a capital lease. The annual lease payments were $30,000 for a six year lease, with the first payment due on August 10th, 2013. Snow Plow's "R" "US" manufactured the snow plow for $86,234.22 and realizes a gross profit of 40% on sales. Their cost of capital is 10% and they depreciate assets straight line, no salvage value, 6 years.1. Record the journal entries to account for this lease for Snow Plow's "R" "US" on August 10th, 2013, fiscal year end Dec 31, 2013, & August 10th, 2014.2. How much expense would they report on their Jan 1 to Dec 31 income statement?3. Show the partial balance sheet accounts (with balances) as of Dec 31, 2013.ABC had pretax accounting income of $100,000 for the last four years. Four years ago an asset was purchased for $25,000, depreciated straight line, no salvage value, 4 years. MACRS, 3 year is used for tax purposes. The company tax rate is 35%.1. Record the journal entry to capture the tax expense in each of the four years.2. What is the balance in the deferred taxes payable account at the end of year two?3. What is the balance in taxes payment account at the end of year three?XYZ had the following pretax accounting income:2008 $150,0002009 $100,0002010 $100,0002011 $100,000During 2008 the following journal entry was made:Cash $50,000Unearned rent revenue $50,000The rent was earned as follows:2008 $02009 $20,0002010 $10,0002011 $20,0001. Record the journal entry to capture the tax expense in each of the four years, the company tax rate is 40%2. What is the balance of deferred tax account at the end of 20093. What is the balance of the taxes payable at the end of 2010?

 

Paper#43514 | Written in 18-Jul-2015

Price : $28
SiteLock