Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 17 Feb 2018 My Price 6.00

Winn Heat Transfer

Operating lease; advance payment; leasehold improvement

On January 1, 2016, Winn Heat Transfer leased office space under a three-year operating lease agreement. The arrangement specified three annual rent payments of $80,000 each, beginning January 1, 2016, the inception of the lease, and at each January 1 through 2018. Winn also paid a $96,000 advance payment at the inception of the lease in addition to the first $80,000 rent payment. With permission of the owner, Winn made structural modifications to the building before occupying the space at a cost of $180,000. The useful life of the building and the structural modifications were estimated to be 30 years with no residual value.

Required:

Prepare the appropriate entries for Winn Heat Transfer from the inception of the lease through the end of 2016. Winn’s fiscal year is the calendar year. Winn uses straight-line depreciation.

 

Answers

(5)
Status NEW Posted 17 Feb 2018 09:02 PM My Price 6.00

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