Loading...

Messages

Proposals

Stuck in your homework and missing deadline? Get urgent help in $10/Page with 24 hours deadline

Get Urgent Writing Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework & Achieve A+ Grades.

Privacy Guaranteed - 100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support

Intermediate accounting chapter 21 solutions

27/03/2021 Client: saad24vbs Deadline: 2 Day

CHAPTER 21

Accounting for Leases

SOLUTIONS TO EXERCISES

EXERCISE 21-1 (15–20 minutes)

(a) This is a capital lease to Adams since the lease term (5 years) is greater than 75% of the economic life (6 years) of the leased asset. The lease term is 831/3% (5 ÷ 6) of the asset’s economic life.

(b) Computation of present value of minimum lease payments: $9,968 X 4.16986* = $41,565

*Present value of an annuity due of 1 for 5 periods at 10%.

(c) 1/1/12 Leased Equipment................................... 41,565 Lease Liability.................................. 41,565

Lease Liability.......................................... 9,968 Cash................................................... 9,968

12/31/12 Depreciation Expense............................. 8,313 Accumulated Depreciation— Capital Leases.............................. 8,313 ($41,565 ÷ 5 = $8,313)

Interest Expense...................................... 3,160 Interest Payable................................ 3,160

[($41,565 – $9,968) X .10]

1/1/13 Lease Liability.......................................... 6,808 Interest Payable....................................... 3,160

Cash................................................... 9,968

Copyright © 2011 John Wiley & Sons, Inc. Kieso,     Intermediate Accounting, 14/e, Solutions Manual (    For Instructor Use Only) 21-1

EXERCISE 21-2 (20–25 minutes)

(a) To Brecker, the lessee, this lease is a capital lease because the terms satisfy the following criteria:

1. The lease term is greater than 75% of the economic life of the leased asset; that is, the lease term is 831/3 % (50/60) of the economic life.

2. The present value of the minimum lease payments is greater than 90% of the fair value of the leased asset; that is, the present value of $10,515 (see below) is 96% of the fair value of the leased asset:

(b) The minimum lease payments in the case of a guaranteed residual value by the lessee include the guaranteed residual value. The present value therefore is:

Monthly payment of $250 for 50 months........... $ 9,800 Residual value of $1,180...................................... 715 Present value of minimum lease payments....... $10,515

(c) Leased Equipment....................................................... 10,515 Lease Liability....................................................... 10,515

(d) Depreciation Expense................................................. 186.70 Accumulated Depreciation—Capital Leases................................................................ 186.70 [($10,515 – $1,180) ÷ 50 months = $186.70]

(e) Lease Liability.............................................................. 144.85 Interest Expense (1% X $10,515)................................ 105.15

Cash....................................................................... 250.00

EXERCISE 21-3 (20–30 minutes)

Capitalized amount of the lease: Yearly payment........................................................... $90,000 Executory costs.......................................................... (3,088 ) Minimum annual lease payment................................ $86,912

21-2 Copyright © 2011 John Wiley & Sons, Inc. Kieso,     Intermediate Accounting, 14/e, Solutions Manual (    For Instructor Use Only)

EXERCISE 21-3 (Continued)

Present value of minimum lease payments $86,911.86 X 6.32825 = $550,000.00

1/1/13 Leased Buildings............................................. 550,000 Lease Liability.......................................... 550,000

1/1/13 Executory Costs................................................ 3,088 Lease Liability.................................................. 86,912

Cash........................................................... 90,000

12/31/13 Depreciation Expense..................................... 55,000 Accumulated Depreciation— Capital Leases...................................... 55,000 ($550,000 ÷ 10)

12/31/13 Interest Expense (See Schedule 1)........................................... 55,571

Interest Payable........................................ 55,571

1/1/14 Executory Costs................................................ 3,088 Interest Payable............................................... 55,571 Lease Liability.................................................. 31,341

Cash........................................................... 90,000

12/31/14 Depreciation Expense..................................... 55,000 Accumulated Depreciation— Capital Leases...................................... 55,000

12/31/14 Interest Expense.............................................. 51,810 Interest Payable........................................ 51,810

Copyright © 2011 John Wiley & Sons, Inc. Kieso,     Intermediate Accounting, 14/e, Solutions Manual (    For Instructor Use Only) 21-3

EXERCISE 21-3 (Continued)

Schedule 1 KIMBERLY-CLARK CORP. Lease Amortization Schedule

(Lessee)

Date

Annual Payment Less

Homework is Completed By:

Writer Writer Name Amount Client Comments & Rating
Instant Homework Helper

ONLINE

Instant Homework Helper

$36

She helped me in last minute in a very reasonable price. She is a lifesaver, I got A+ grade in my homework, I will surely hire her again for my next assignments, Thumbs Up!

Order & Get This Solution Within 3 Hours in $25/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 3 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 6 Hours in $20/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 6 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 12 Hours in $15/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 12 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

6 writers have sent their proposals to do this homework:

Helping Hand
Instant Assignments
Calculation Guru
Ideas & Innovations
A Grade Exams
Writing Factory
Writer Writer Name Offer Chat
Helping Hand

ONLINE

Helping Hand

You can award me any time as I am ready to start your project curiously. Waiting for your positive response. Thank you!

$94 Chat With Writer
Instant Assignments

ONLINE

Instant Assignments

Give me a chance, i will do this with my best efforts

$44 Chat With Writer
Calculation Guru

ONLINE

Calculation Guru

Give me a chance, i will do this with my best efforts

$109 Chat With Writer
Ideas & Innovations

ONLINE

Ideas & Innovations

You can award me any time as I am ready to start your project curiously. Waiting for your positive response. Thank you!

$68 Chat With Writer
A Grade Exams

ONLINE

A Grade Exams

I will cover all the points which you have mentioned in your project details.

$90 Chat With Writer
Writing Factory

ONLINE

Writing Factory

You can award me any time as I am ready to start your project curiously. Waiting for your positive response. Thank you!

$57 Chat With Writer

Let our expert academic writers to help you in achieving a+ grades in your homework, assignment, quiz or exam.

Similar Homework Questions

Magazine cover dimensions photoshop - Gentle ben is a morgan horse - Life span human development for helping professionals 4th 15 - The green thumb gardener worksheet answers - Discussion Question - Dr stanley a psychologist conducts a study - Sexual health clinic falkirk - A bucket of water can be whirled - Alyogyne huegelii blue heeler - One crown office row - Villa of the mysteries floor plan - Ba falcon spark plug socket size - Igcse chemistry grade boundaries 2015 - What is a branching dichotomous key - Which of the following is not a type of muscle - Hyperbole figure of speech definition and examples - 32c in european size - Predictive monitoring of business processes - Topic 2: Communication and Databases - 1 - Sealy embody introspection mattress reviews - The seven elements of the speech communication process - One Single Spaced Case - What are the legal ramifications of psychology of command - HW - Discussion - Inter american telecommunication commission - Introduction to management science edition solutions - Modern erp marianne bradford pdf - In-the-News Topic: Any Topic Relevant to an Enterprise CIO - The danger of a single story questions and answers - What are pantiliners for yahoo answers - Royal society and freemasonry - C489 fmea table - The creative revolution in advertising refers to - Justification for the new position - Bargaining mix in negotiation - Possible sources of error in a titration lab - Entering the academic conversation - Bachelor of software engineering unsw - Hpi soap note - Intervals - For all work solver - Can you feel the - Eight steps to sound ethical decision making - Medicare levy exemption form pdf - Steps in international marketing - Bupa change of details form - Basic networking terms and definitions pdf - Internship program outline sample - Conflicting requirements example - Heart diagram worksheet answers - Erp address information silos by - Superior micro products uses the weighted average method - How to increase leverage in capsim - HCA320 Discussion Mod 4: - Single phase energy meter diagram - Serving it right answers - Order # 10193 - Advantages of human alterations to biomes - Cube root of 16 - Hidden intellectualism gerald graff summary - It infrastructure domains affected by internal use only - Power cd g burner 2.0 6 serial - His soul stretched tight across the skies - Data communication and networking - How to write a recommendation for a project - Hp eprint file types - Benzoic acid reaction with grignard reagent - Paulo freire banking concept of education - Microsoft certification scorecard - Adf gap year jobs - Cumulative area to z score - Ignore correction proofreading mark - Ethical hacking rules of engagement - Strategic audit helps corporate governance - Values and attitudes in jasper jones - Week 15 Health care - Grouped frequency distribution mean median mode - Romeo and juliet act 3 scene 5 line 176 - Hancox racing syndicate 9 - Insider trading involves course hero - Using the indirect method, patent amortization expense for the period - Issues faced by beginning therapists - Ju - IOT threats to database security - Custom units in excel - To 247 thermal resistance - Effective business writing quiz - Signature assignment classroom management plan - Culture diverse society - Oracle sequence cache size performance - Paul hartley vocational assessor - Des moines register classified ads pets - Beaver scout campfire songs - Womb for rent ellen goodman - Soundtraxx tsunami steam cv list - +91 9928097710 BoYfRiEnD Vashikaran Specialist Molvi ji in Mumbai - Exercise 10 13 revising depreciation lo c2 - Assignment - Applying snp profiles to drug choices