Business, 07.05.2021 17:50 TombRaider167

LeBron James (LBJ) Corporation agrees on January 1, 2020, to lease equipment from Cavaliers, Inc. for 3 years. The lease calls for annual lease payments of $23,000 at the beginning of each year. The lease does not transfer ownership, nor does it contain a bargain purchase option, and is not a specialized asset. In addition, the useful life of the equipment is 10 years, and the present value of the lease payments is less than 90% of the fair value of the equipment. Prepare LBJ's journal entries on January 1, 2020 (commencement of the operating lease), and on December 31, 2020. Assume the implicit rate used by the lessor is unknown, and LBJ's incremental borrowing rate is 6%. BE21.15
Account TitlesDebitCredit
01/01/20
cash 23000
lease liability 23000
LEBRON JAMES CORPORATION
Schedule A - Lease Amortization Schedule
Annuity-Due Basis
InterestReduction
Annual(6%) onof LeaseLease
DatePaymentLiabilityLiabilityLiabil ity
1/1/20
1/1/20
1/1/21
1/1/22

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 16:00

Match each feature with the savings account type

Answers: 3

Answer

Business, 21.06.2019 20:30

What do economists mean when they use the latin expression ceteris paribus?

Answers: 3

Answer

Business, 22.06.2019 01:20

Which of the following statements concerning an organization's strategy is true? a. cost accountants formulate strategy in an organization since they have more inputs about costs. b. businesses usually follow one of two broad strategies: offering a quality product at a high price, or offering a unique product or service priced lower than the competition. c. a good strategy will always overcome poor implementation. d. strategy specifies how an organization matches its own capabilities with the opportunities in the marketplace to accomplish its objectives.

Answers: 1

Answer

Business, 22.06.2019 20:00

Edna gomez is the founder of the restaurant chain good and green. she ensures that the products in her stores are ethically and responsibly sourced. most products are therefore 100 percent organic and all packaging is manufactured from recycled material. also, her company sources ingredients from farms within 100 miles from her locations. edna's belief is that her restaurants should be able to support the community at large. which of the following terms best describes edna gomez? a. headhunter b. category captain c. social entrepreneur d. trade creditor

Answers: 3

Answer

You know the right answer?

LeBron James (LBJ) Corporation agrees on January 1, 2020, to lease equipment from Cavaliers, Inc. fo...

Questions