Q: On June 30, 2018, Georgia-Atlantic, Inc.
On June 30, 2018, Georgia-Atlantic, Inc. leased warehouse equipment from Builders, Inc. The lease agreement calls for Georgia-Atlantic to make semiannual lease payments of $562,907 over a three-year l...
See AnswerQ: Cupola Fan Corporation issued 10%, $400,000, 10
Cupola Fan Corporation issued 10%, $400,000, 10-year bonds for $385,000 on June 30, 2018. Debt issue costs were $1,500. Interest is paid semiannually on December 31 and June 30. One year from the issu...
See AnswerQ: On January 1, Espinoza Moving and Storage leased a truck for
On January 1, Espinoza Moving and Storage leased a truck for a four-year period, at which time possession of the truck will revert back to the lessor. Annual lease payments are $10,000 due on December...
See AnswerQ: Ace Leasing acquires equipment and leases it to customers under long-
Ace Leasing acquires equipment and leases it to customers under long-term sales-type leases. Ace earns interest under these arrangements at a 6% annual rate. Ace leased a machine it purchased for $600...
See AnswerQ: On January 1, James Industries leased equipment to a customer for
On January 1, James Industries leased equipment to a customer for a four-year period, at which time possession of the leased asset will revert back to James. The equipment cost James $700,000 and has...
See AnswerQ: Hoffman Corporation issued $60 million of 5%, 20-year
Hoffman Corporation issued $60 million of 5%, 20-year bonds at 102. Each of the 60,000 bonds was issued with 10 detachable stock warrants, each of which entitled the bondholder to purchase, for $20, o...
See AnswerQ: On January 1, Garcia Supply leased a truck for a four
On January 1, Garcia Supply leased a truck for a four-year period, at which time possession of the truck will revert back to the lessor. Annual lease payments are $10,000 due on December 31 of each ye...
See AnswerQ: Bryant leased equipment that had a retail cash selling price of $
Bryant leased equipment that had a retail cash selling price of $600,000 and a useful life of five years with no residual value. The lessor paid $530,000 to acquire the equipment and used an implicit...
See AnswerQ: On January 1, 2018, Jasperse Corporation leased equipment under a
On January 1, 2018, Jasperse Corporation leased equipment under a finance lease designed to earn the lessor a 12% rate of return for providing long-term financing. The lease agreement specified ten an...
See AnswerQ: On December 31, 2018, Yard Art Landscaping leased a delivery
On December 31, 2018, Yard Art Landscaping leased a delivery truck from Branch Motors. Branch paid $40,000 for the truck. Its retail value is $45,114. The lease agreement specified annual payments of...
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