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, 2 Days 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 26 Jul 2017 My Price 11.00

Glaus Leasing Company


Glaus Leasing Company agrees to lease machinery to Jensen Corporation on January 1, 2010. The following information relates to the lease agreement.
1 The term of the lease is 7 years with no renewal option, and the machinery has an estimated economic life of 9 years
2 The cost of the machinery is $ 525,000, and the fair value of the asset on January 1, 2010, is $700,000.
3 At the end of the lease term the asset reverts to the lessor. At the end of the lease term the asset has guaranteed residual value of $ 100,000. Jensen depreciates all if its equipment on a straight-line basis
4 The lease agreement requires equal annual rental payments, beginning on January 1, 2010.
5 The collectability of the lease payments is reasonable predictable, and there are no important uncertainties surrounding the amount of costs yet to be incurred by the lessor.
6 Glaus desires a 10% rate of return on its investments. Jensen's incremental borrowing rate is 11%, and the lessor's implicit rate is unknown.


Instructions:

(Assume the accounting period ends on December 31)
(a.) Discuss the nature of this lease for both the lessee and the lessor.
(b.) Calculate the amount of the annual rental payment required.
(c.) Compute the present value of the minimum lease payments.
(d.) Prepare the journal entries Jensen would make in 2010 and 2011 related to the lease arrangements.
(e.) Prepare the journal entries Glaus would make in 2010 and 2011.

Answers

Maurice Tutor
(5)
Status NEW Posted 26 Jul 2017 02:07 PM My Price 11.00

Hel-----------lo -----------Sir-----------/Ma-----------dam----------- Â-----------  -----------Tha-----------nk -----------You----------- fo-----------r u-----------sin-----------g o-----------ur -----------web-----------sit-----------e a-----------nd -----------acq-----------uis-----------iti-----------on -----------of -----------my -----------sol-----------uti-----------on.-----------Ple-----------ase----------- pi-----------ng -----------me -----------on -----------cha-----------t I----------- am----------- on-----------lin-----------e o-----------r i-----------nbo-----------x m-----------e a----------- me-----------ssa-----------ge -----------I w-----------ill----------- be----------- ca-----------tch-----------

Not Rated(0)