Business, 08.07.2019 22:20 arulanreddy3754

On january 1, 2014, hayes, inc. leases equipment from smithsonian company for an annual lease rental of $25,000. the lease term is five years, and the lessor's interest rate implicit in the lease is 8%. the lessee's incremental borrowing rate is 8.25%. the useful life of the equipment is five years, and its estimated residual value = its removal cost. annuity tables indicate that the present value of an annual lease rental of $1 (at 8% rate) is $3.993. the fair value of leased equipment = the present value of rentals. (assume the lease is capitalized.)required: prepare accounting entries required by hayes, inc. for 2014.compute and illustrate the effect on the income statement for the year ended december 31, 2014, and for the balance sheet as of december 31, 2014.construct a table showing payments of interest and principal made every year for the five-year lease term. construct a table showing expenses charged to the income statement for the five-year lease term if the equipment is purchased. show a column for (1) amortization, (2) interest, and (3) total expenses. in one paragraph, discuss the income and cash flow implications from this capital lease.

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 07:50

Budget in this final week, you will develop a proposed budget of $150,000 for the first year of the program and complete the final concept paper for the proposed program due for senior management review. the budget should identify the program's anticipated expenses for the year ahead. budget line items should be consistent with the proposed program and staffing plan. using the readings for the week, the south university online library, and the internet, complete the following tasks: create a proposed budget of $150,000 for the first year of the proposed program including the cost for personnel, supplies, education materials, marketing costs, and so on in a microsoft excel spreadsheet. you may transfer your budget to your report. justify the cost for each item of the proposed budget in a budget narrative.

Answers: 2

Answer

Business, 22.06.2019 13:00

Dakota products has a production budget as follows: may, 16,000 units; june, 19,000 units; and july, 24,000 units. each unit requires 3 pounds of raw material and 2 direct labor hours. dakota desires to keep an inventory of 10% of the next month’s requirements on hand. on may, 1 there were 4,800 pounds of raw material in inventory. direct labor hours required in may would be:

Answers: 1

Answer

Business, 22.06.2019 19:30

Do a swot analysis for the business idea you chose in question 2 above. describe at least 2 strengths, 2 weaknesses, 2 opportunities, and 2 threats for that company idea.

Answers: 2

Answer

Business, 22.06.2019 20:20

Precision aviation had a profit margin of 6.25%, a total assets turnover of 1.5, and an equity multiplier of 1.8. what was the firm's roe? a. 15.23%b. 16.03%c. 16.88%d. 17.72%e. 18.60%

Answers: 2

Answer

You know the right answer?

On january 1, 2014, hayes, inc. leases equipment from smithsonian company for an annual lease rental...

Questions