[Solved] Assignment 219045

by

Assignment Details

Subject: Business / Accounting
Question
Problem 21-10 Sandhill Company manufactures a check-in kiosk with an estimated economic life of 12 years and leases it to National Airlines for a period of 10 years. The normal selling price of the equipment is $287,540, and its unguaranteed residual value at the end of the lease term is estimated to be $18,300. National will pay annual payments of $40,000 at the beginning of each year and all maintenance, insurance, and taxes. Sandhill incurred costs of $185,300 in manufacturing the equipment and $3,700 in negotiating and closing the lease. Sandhill has determined that the collectibility of the lease payments is reasonably predictable, that no additional costs will be incurred, and that the implicit interest rate is 9%.Click here to view factor tables
Compute the amount of each of the following items. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.)(1) Lease receivable $
(2) Sales price $
(3) Cost of sales $Prepare a 10-year lease amortization schedule. (Round answers to 0 decimal places e.g. 58,971.)SANDHILL COMPANY (Lessor)
Lease Amortization Schedule
Annuity Due Basis, Unguaranteed Residual Value
Beginning
of Year Annual Lease Payment
Plus Residual Value Interest on
Lease Receivable Lease Receivable
Recovery Lease
Receivable
Initial PV $ $ $ $
1
2
3
4
5
6
7
8
9
10
End of 10
$ $ $Prepare all of the lessor’s journal entries for the first year. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Round answers to 0 decimal places e.g. 58,971.)Account Titles and Explanation Debit Credit
(To record the sale and the cost of goods sold in the lease transaction.)
(To record payment of the initial direct costs relating to the lease.)
(To record receipt of the first lease payment.)
(To record interest earned during the first year of the lease.)
Click if you would like to Show Work for this question: Open Show WorkQuestion Attempts: 0 of 2 used SAVE FOR LATER SUBMIT ANSWER
Copyright © 2000-2017 by John Wiley & Sons, Inc. or related companies. All rights reserved. 

Never use plagiarized sources. Get Your Original Essay on
[Solved] Assignment 219045
Hire Professionals Just from $11/Page
Order Now Click here
Chat Now
Lets chat on via WhatsApp
Powered by Tutors Gallery
Hello, Welcome to our WhatsApp support. Reply to this message to start a chat.