Maurice Tutor

(5)

$15/per page/Negotiable

About Maurice Tutor

Levels Tought:
Elementary,Middle School,High School,College,University,PHD

Expertise:
Algebra,Applied Sciences See all
Algebra,Applied Sciences,Biology,Calculus,Chemistry,Economics,English,Essay writing,Geography,Geology,Health & Medical,Physics,Science Hide all
Teaching Since: May 2017
Last Sign in: 401 Weeks Ago, 1 Day Ago
Questions Answered: 66690
Tutorials Posted: 66688

Education

  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

Experience

  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 16 Aug 2017 My Price 9.00

Wooster Corporation

Lease Versus purchase

p5. Wooster Corporation can either lease or buy a small garage next to its business that will provide parking for its customers. The company can lease the building for a period of 12 years, which approximates the useful life of the facility and thus qualifies as a capital lease. The terms of the lease are payments of $24,000 per year for 12 years. Wooster currently is able to borrow money at a long-term interest rate of 9 percent. The company can purchase the building by signing an $160,000 long-term mortgage with monthly payments of $2,000. The mortgage also carries an interest rate of 9 percent.

 

ReQUIReD

1.    With regard to the lease option:

a.    Calculate the present value of the lease. (Round to the nearest dollar.)

b.    Prepare the journal entry to record the lease agreement.

c.    Prepare the journal entry to record depreciation of the building for the first year using the straight-line method.

d.   Prepare the journal entries to record the lease payments for the first two years.

2.    With regard to the purchase option:

a.    Prepare a monthly payment schedule showing the monthly payment, the inter- est for the month, the reduction in debt, and the unpaid balance for the first three months. (Round to the nearest dollar.)

b.    Prepare the journal entries to record the purchase and the first two monthly payments.

3.    Business appliCation ▶Based on your calculations, which option seems to be best? Aside from cost, name an advantage and a disadvantage of each option.

 

Answers

Maurice Tutor
(5)
Status NEW Posted 16 Aug 2017 11:08 PM My Price 9.00

Hel-----------lo -----------Sir-----------/Ma-----------dam-----------Tha-----------nk -----------You----------- fo-----------r u-----------sin-----------g o-----------ur -----------web-----------sit-----------e a-----------nd -----------and----------- ac-----------qui-----------sit-----------ion----------- of----------- my----------- po-----------ste-----------d s-----------olu-----------tio-----------n.P-----------lea-----------se -----------pin-----------g m-----------e o-----------n c-----------hat----------- I -----------am -----------onl-----------ine----------- or----------- in-----------box----------- me----------- a -----------mes-----------sag-----------e I----------- wi-----------ll

Not Rated(0)