Business, 14.04.2020 23:21 aysenazz

Marin enters into an agreement with Traveler Inc. to lease a car on December 31, 2019. The following information relates to this agreement.

1. The term of the non-cancelable lease is 3 years with no renewal or bargain purchase option. The remaining economic life of the car is 3 years, and it is expected to have no residual value at the end of the lease term.
2. The fair value of the car was $14,460 at the commencement of the lease.
3. Annual payments are required to be made on December 31 at the end of each year of the lease, beginning December 31, 2020. The first payment is to be of an amount of $4,753.20, with each payment increasing by a constant rate of 5% from the previous payment (i. e., the second payment will be $4,990.86 and the third and final payment will be $5,240.40).
4. Marin’s incremental borrowing rate is 8%. The rate implicit in the lease is unknown.
5. Marin uses straight-line depreciation for all similar cars.

Required:
Prepare Marin’s journal entries for 2019, 2020, and 2021.

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 17:00

You hold a diversified $100,000 portfolio consisting of 20 stocks with $5,000 invested in each. the portfolio's beta is 1.12. you plan to sell a stock with b = 0.90 and use the proceeds to buy a new stock with b = 1.50. what will the portfolio's new beta be? do not round your intermediate calculations.

Answers: 2

Answer

Business, 23.06.2019 06:30

Afinance company wants to upgrade its accounting software to a higher version. this version change requires a change in data formats. which method represents a change in data formats?

Answers: 1

Answer

Business, 23.06.2019 14:30

The following data is provided for garcon company and pepper company. garcon company pepper company beginning finished goods inventory $12,600 $16,900 beginning work in process inventory 17,600 21,600 beginning raw materials inventory 7,700 10,650 rental cost on factory equipment 28,500 23,050 direct labor 23,000 39,800 ending finished goods inventory 18,500 14,100 ending work in process inventory 26,500 19,800 ending raw materials inventory 6,800 7,600 factory utilities 12,300 17,750 factory supplies used 13,000 4,400 general and administrative expenses 31,000 59,500 indirect labor 2,450 9,580 repairsâ€”factory equipment 6,860 3,700 raw materials purchases 37,000 66,000 selling expenses 51,200 48,700 sales 238,530 337,510 cash 29,000 17,200 factory equipment, net 217,500 118,825 accounts receivable, net 16,800 24,200 compute the total prime costs for both garcon company and pepper company.

Answers: 1

Answer

Business, 23.06.2019 16:00

Which best describes which careers would work in offices? 1.marketing information management and research, distribution and logistics, and marketing communications and promotion employees can work in offices.2.all marketing, sales, and service employees can work in offices.3.all marketing, sales, and service employees except those in management and entrepreneurship can work in offices.4.sales and service employees work in offices, but marketing employees do not

Answers: 1

Answer

You know the right answer?

Marin enters into an agreement with Traveler Inc. to lease a car on December 31, 2019. The following...

Questions