Q: To raise operating funds, North American Courier Corporation sold its building
To raise operating funds, North American Courier Corporation sold its building on January 1, 2021, to an insurance company for $500,000 and immediately leased the building back. The lease is for a 10-...
See AnswerQ: Rand Medical manufactures lithotripters. Lithotripsy uses shock waves instead of surgery
Rand Medical manufactures lithotripters. Lithotripsy uses shock waves instead of surgery to eliminate kidney stones. Physicians’ Leasing purchased a lithotripter from Rand for $2,000,000 and leased it...
See AnswerQ: On January 1, 2021, Winn Heat Transfer leased office space
On January 1, 2021, Winn Heat Transfer leased office space under a three-year operating lease agreement. The arrangement specified three annual lease payments of $80,000 each, beginning December 31, 2...
See AnswerQ: On January 1, 2021, Sweetwater Furniture Company leased office space
On January 1, 2021, Sweetwater Furniture Company leased office space under a 21-year operating lease agreement. The contract calls for annual lease payments on December 31 of each year. The payments a...
See AnswerQ: On January 1, 2021, National Insulation Corporation (NIC)
On January 1, 2021, National Insulation Corporation (NIC) leased equipment from United Leasing under a finance lease. Lease payments are made annually. Title does not transfer to the lessee and there...
See AnswerQ: Adams Industries holds 40,000 shares of FedEx common stock,
Adams Industries holds 40,000 shares of FedEx common stock, which is not a large enough ownership interest to allow Adams to exercise significant influence over FedEx. On December 31, 2021, and Decemb...
See AnswerQ: On January 1, 2021, Rick’s Pawn Shop leased a truck
On January 1, 2021, Rick’s Pawn Shop leased a truck from Corey Motors for a six-year period with an option to extend the lease for three years. Rick’s had no significant economic incentive as of the b...
See AnswerQ: Each of the four independent situations below describes a sales-type
Each of the four independent situations below describes a sales-type lease in which annual lease payments of $10,000 are payable at the beginning of each year. Each is a finance lease for the lessee....
See AnswerQ: Alsup Consulting sometimes performs services for which it receives payment at the
Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, up to six months after services commence. Alsup recognizes service revenue for financial...
See AnswerQ: Fore Farms reported a pretax operating loss of $137 million for
Fore Farms reported a pretax operating loss of $137 million for financial reporting purposes in 2021. Contributing to the loss were (a) a penalty of $5 million assessed by the Environmental Protection...
See Answer
