To raise operating funds, National Distribution Center sold its office building to an insurance company on January 1, 2021, for $890,000 and immediately leased the building back. The operating lease is for the final 12 years of the building's estimated 20-year remaining useful life. The building has a fair value of $890,000 and a book value of $695,000 (its original cost was $1 million). The rental payments of $190,000 are payable to the insurance company each December 31. The lease has an implicit rate of 7%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Required: 1. & 2. Prepare the appropriate entries for National Distribution Center on January 1, 2021 and December 31, 2021, to record the sale- leaseback and necessary adjustments. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answers
Answer:
1-Jan-21
Dr Cash $890,000
Dr Accumulated Depreciation $305,000
Cr Building $1,000,000
Gain On Sale of Building $195,000
1-Jan-21
Dr Right Of Use Assets $1,508,600
Cr Lease Payable $1,508,600
31-Dec-21
Dr Interest Expense $105,602
Dr Lease Payment $84,398
Cr Cash $190,000
31-Dec-21
Dr Amortization Expenses $84,398
Right Of Use Assets $84,398
Explanation:
1. & 2. Preparation for the appropriate entries for National Distribution Center on January 1, 2021 and December 31, 2021, to record the sale- leaseback and necessary adjustments
1-Jan-21
Dr Cash $890,000
Dr Accumulated Depreciation $305,000 ($1,000,000-$695,000)
Cr Building $1,000,000
Gain On Sale of Building $195,000
($890,000+$305,000-$1,000,000)
(To Record Lease)
1-Jan-21
Dr Right Of Use Assets ( $190,000* PVAF 7% for 12year)
($190,000*7.94) $1,508,600
Cr Lease Payable $1,508,600
(To Record The Lease Payable)
31-Dec-21
Dr Interest Expense ($1,508,600*7%) $105,602
Dr Lease Payment $84,398
($190,000-$105,602)
Cr Cash $190,000
(To Record First Lease payment)
31-Dec-21
Dr Amortization Expenses $84,398
Right Of Use Assets $84,398
(To Record Amortisation Expense)
Related Questions
Migration plays an important role in economic development and as a strategy for poverty reduction.
a. True
b. False
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3. There is lots of oil in the world. Would the price of oil increase or decrease in price? Why
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Suppose that a restaurant uses a focus group of regular customers to determine how many customers would buy a proposed new menu item at various prices. Can this information be used to estimate an inverse demand function? A demand function? Explain briefly. Would it be possible to use a focus group to generate data that could be used to estimate a demand function that includes both price and income as explanatory variables?
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The information can be used to estimate an inverse demand function and a demand function as E. the demand curve, and the inverse demand curve can be calculated from it.
A demand function with price and income as explanatory variables can be generated from the focus group by capturing buying pattern data at different prices and levels of income.
It should be noted that a demand function simply shows the relationship that exists between the quantity demanded and price. Based on the question, using a demand function can be computed easily since quantity is a function of price.
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The us government would most likely get involved in which economic issue?
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Answer: The United States government is most likely to get involved in economic issues related to taxation, trade, labor, and the regulation of businesses. Additionally, the government may get involved in other economic issues such as poverty, unemployment, inflation, and the national debt.
Economic ordering quantity with safety stock (LO5) Diagnostic Supplies has expected sales of 84,100 units per year, carrying costs of $5 per unit, and an ordering cost of $10 per order.
a. What is the economic order quantity?
b. What is the average inventory? What is the total carrying cost?
c. Assume an additional 80 units of inventory will be required as safety stock. What will the new average inventory be? What will the new total carrying cost be?
Answers
Answer:c. Assume an additional 80 units of inventory will be required as safety stock. What will the new average inventory be? What will the new total carrying cost be?
Explanation:
Answer:
"Diagnostic Supplies has expected sales of 84,100" units per year, carrying costs of $5 per unit, and an ordering cost of $10 per order.
Explanation:
Which of the following incentives 1/15, net 30, 2/10 net 60 or 1/10 net 90, if any of these, is not likely to be a significant incentive to the customer to pay promptly? Explain your answer. Refer to the information provided in Chapter 7 of your text for clarification on what these incentives mean.
Answers
The incentive that would encourage customers to pay promptly is 2/10 net 60.
Which incentive would be best ?The meaning of the incentive of 2/10 net 60 is that the customer will get a 2 % discount if they pay in 10 days and if they don't then they will have to pay back what they owe in full, in 60 days.
This incentive will be the most significant in convincing customers to pay promptly because a payment in 10 days would reduce what they have to pay in total.
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A firm has the following sales figures: Year 2011: $2.1 million. Year 2012: $2.3 million. Year 2013 $2.5 million. Year 2014 $2.2 million. Year 2015 $3.1 million. Using the naive approach, determine the forecast for next year's sales. A. $3.2 million. B. $3.1 million. C. $3.4 million. D. $2.5 million
Answers
Answer:
3.1 million
Explanation:
naive approach assumes that your projected data point is just your most recent one
because we have 3.1 million last year we assume that it's going to be that this year
Iggy Company is considering three capital expenditure projects. Relevant data for the projects are as follows.
Project Investment Annual income Life of project
22A $242,200 $16,890 6 years
23A $271,500 $20,710 9 years
24A $283,000 $15,700 7 years
Annual income is constant over the life of the project. Each project is expected to have zero salvage value at the end of the project. Iggy Company uses the straight-line method of depreciation.
Required:
Determine the internal rate of return for each project.
Answers
Answer:
Depreciation amount has to be added back to the annual income because it is a non cash expense.
Project 22A
Depreciation = 242,000 / 6 years
= $40,333.33
Annual income = 40,333.33 + 16,890
= $57,223.33
IRR using Excel is:
= 11%
Project 23A
Annual income = 20,710 + 271,500 / 9 years
= $50,876.67
IRR = 12%
Project 24A
Annual income = 15,700 + 283,000 / 7 years
= $56,128.57
IRR = 9%
Note: Look at the formula bar to see how IRR was calculated.
Determine the total expenses based on the following data
assets 72,000
owner's equity 70,000
revenues 20,000
liabilities 16,000
Answers
From the given data, it appears that the expenses result in a negative value of $-14,000. This indicates a deficit, which suggests that the company's liabilities and owner's equity exceed its assets.
To determine the total expenses based on the given data, we need to use the accounting equation: Assets = Liabilities + Owner's Equity. In this case, we are given the values of assets, owner's equity, and liabilities.
Assets = $72,000
Owner's Equity = $70,000
Liabilities = $16,000
Using the accounting equation, we can calculate the total expenses by rearranging the equation:
Expenses = Assets - Liabilities - Owner's Equity
Expenses = $72,000 - $16,000 - $70,000
Expenses = $-14,000
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i. Accrued service revenue Birr bu ii. depreciation birr 300 iii. accrued salary expense birr 800 iv. prepaid rent expired birr 500 v. supplies used birr 100 Requirements a) Journalize and post adjusting entries b) Prepare adjusted tribal balance c) Prepare financial statement d) Journalize closing entries e) Preparing post closing trial balance
Answers
The Following are required Journalize and post adjusting entries.
Debit Credit
Accrued Service Revenue A/cTo Service Revenue A/c
Depreciation A/c 300To Machinery A/c 300
Salary A/c 800To Salary Payable 800
Rent 500To Prepaid Rent 500
Supplies A/c 100To Payable 100
How do you record accrued service revenue?Accrued revenue is reported on a company's financial statements as an adjusting journal entry under current assets on the balance sheets and as a financial result and capital on the income statement. When the payment is made, it is recorded in the asset account as an adjusting entry for accrued revenue.
Thus, the mentioned above are required Journalize.
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TRUE/FALSE. countries with strong balance sheets and declining budget deficits tend to have lower interest rates.
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Interest rates are often lower in nations with solid financial standing and decreasing budget deficits. It is False.
About Interest rates :Interest rates are often lower in nations with solid financial standing and decreasing budget deficits. The Fed is likely to raise short-term interest rates while the economy is slowing down. Business operations and the value of investment assets denominated in a foreign currency are both impacted by changes in that currency's value.
They collect savings deposits and disburse loans to those in need. They offer a range of services, including checking accounts and money market transactions, to enable the transfer of wealth between savers and those in need.
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The features of a product that make it dífferent from other products on the market are collectively referred to as the
product's
O point of difference
O protocol
O market distinction
O product mix
Answers
Answer:
point of difference
Explanation:
Points of difference is the term that also describes the salient features that make a product stand out from its competitors. There are unique traits that make a product different from the rest. Points of difference are also referred to as differentiators or key differentiators.
Marketers use the point of difference to advertise or promote a product. They highlight the stand-out attributes to convince customers to buy.
Read the following scenario and choose the correct graphs they represent.
The government passes a new tax on fast food that takes effect immediately.
Please answer it correctly and asap.
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Answer:
Explanation: the answer is the answer for the thing
The process of allocating funds to projects and investments includes the following:
A. Analysis
B. Selection
C. Monitoring
D. Evaluating performance
Analyze or explain any three of the above.
Answers
The process of allocating funds to projects and investments involves several important steps, including analysis, selection, and monitoring. By following these steps, organizations can make informed decisions about where to invest their resources and ensure that their investments are delivering the expected returns.
The process of allocating funds to projects and investments involves several important steps, including analysis, selection, monitoring, and evaluating performance. Here are explanations of three of these steps:
Analysis: This step involves gathering and analyzing information about potential projects and investments to determine whether they are financially viable and aligned with the organization's goals and objectives. This includes conducting market research, analyzing financial statements and projections, assessing risks, and identifying potential barriers to success. The analysis phase helps decision-makers to make informed choices about which projects and investments to pursue.
Selection: Once potential projects and investments have been analyzed, the next step is to select the most promising ones. This involves using the information gathered during the analysis phase to compare options and choose the projects and investments that are most likely to provide the greatest returns on investment. The selection process may involve developing criteria for evaluating potential options, ranking them based on their financial potential, and weighing the costs and benefits of each option.
Monitoring: Once projects and investments have been selected and funded, it is important to monitor their progress and performance over time. This involves regularly reviewing financial and operational data to identify any potential issues or risks, and taking action to address them. Monitoring can help decision-makers to stay informed about the status of their investments, identify opportunities for improvement, and make adjustments to their funding strategies as needed.
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Do I look like Dababy be honest
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Answer:
No
Explanation:
he does not have a head that looks like a dam football and just NOOOO
beepbeepbeepbeepbeepbeepbeep
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Answer:
beeep
Explanation:
This question took some time to figure out, but yes beep
In the _____________ stage of a project you are more likely to find status reports, changes, and the creation of forecasts.
Answers
Answer:
Executing
Explanation:
The project life cycle shows the cycle from introduction to maturity or decline of the products. It shows the overall journey of the product
In order to determine the status regarding the reports, any changes made and the development of the forecast this would be shown in the stage of execution
So as per the given situation, the executing stage should be considered
so what would you do if your friend expose you for being on brainly?
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Answer:
Danm just know your doomed or just beg the person.
Explanation:
When must you wash your hands
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Answer:
Before, during, and after preparing food. Before and after eating food. Before and after caring for someone at home who is sick with vomiting or diarrhea. Before and after treating a cut or wound.
wash your hands before and after always and preferably with antibacterial soap
characteristics of bureaucracy and examples
Answers
A distinct hierarchy, specialization, a division of labor, and a system of written rules, or standard operating procedures, are the four main characteristics of bureaucracies.
What is meant by bureaucracy?a method of administering or regulating a nation, business, or organization that is run by a large number of officials paid to strictly adhere to regulations: When I applied for financial help at the university, I ran into a lot of red tape. Organizing and managing. administer.
What is an example of bureaucracy?Large enterprises, the military, and government organizations are typical examples of bureaucracy. Each of these organizations has a codified decision-making process, written rules and regulations, a hierarchical organizational structure, and a division of work.
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If you were seleted for this position, how quickly would you be able to start?*
Answers
If I were selected for the position, I would be able to start immediately, provided that all the formalities have been completed and all the requirements have been fulfilled.
As a responsible individual, I would like to make sure that I do not leave my current employer stranded and would provide them with adequate notice as required. I believe in fulfilling my professional obligations and would like to do the same in my current position. I would work with my current employer to ensure that I am released from my current position in a professional and amicable manner. This would include ensuring that all my work is up-to-date and handing over my responsibilities to my successor in a systematic and thorough manner.
Once the notice period is over and all the formalities have been completed, I would be able to start working in my new position. I understand the importance of being punctual and professional and would make sure that I arrive at work on time and fulfill all my responsibilities to the best of my abilities. I believe in teamwork and would work closely with my colleagues to ensure that the objectives of the organization are met.
In conclusion, if I were selected for the position, I would be able to start immediately, provided that all the formalities have been completed and all the requirements have been fulfilled. I would work with my current employer to ensure that I am released from my current position in a professional and amicable manner and would arrive at work on time and fulfill all my responsibilities to the best of my abilities.
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On the 24th, a shooting incident occurred at a high school in St. Louis, Missouri, my country. A 19-year-old gunman opened fire on the campus, causing 2 deaths and 7 injuries, and was eventually shot dead by the police.
On October 25, St. Louis Mayor Tishaura Jones said that gun violence continues to take the lives of children and children in our country, and its severity is enough to become a "national emergency" and the government should take action. Police said at a news conference that day that the gunman was Orlando Harris, a 19-year-old male who just graduated from the high school last year.
Answers
The deaths at the high school in St. Louis, Missouri, United States show that an argument can indeed be made for tighter gun controls in the country.
Should there be tighter gun controls in the United States?The most recent tragedy that resulted from gun violence in the United States, was the killing of two people at the Central Visual and Performing Arts High School, St. Louis, Missouri, by a previous student of the school.
Over the years, there have been other instances of gun violence in American schools including the shooting at Uvalde, Texas that led to the deaths of 19 children.
The United States has the highest rates of gun ownership in the entire world as well as one of the highest rates for mass shooting. This means that there must be a correlation between the two. Nations that have tighter gun controls have lower rates of mass shooting.
There is therefore a good enough argument that the United States should introduce stricter and tighter gun controls in order to reduce the incidence of mass shootings, especially at schools.
The rest of the question is:
Does this shooting add more evidence for the argument for tighter gun control or less?
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a person who is close to retirement and looking for a less risky investment should invest in
A commodities
B stocks
C mutual funds
D cryptocurrency
Answers
Answer:
C mutual funds
Explanation:
they do all the work for you while you sit back and relax.
Question 16 of 20
The supply of a good available in a market is likely to decrease when:
A companies believe that the product's selling price will go up.
B. new regulations increase the cost of making the product.
оооо
C. the number of workers able to make the product increases.
D. new technology makes producing the product cheaper.
SUBMIT
Answers
When there is a decrease in the supply of a good, the cause is that B. new regulations ...
A decrease in supply does not occur when:
Companies are sure of increased prices.There is an increase in the number of workers.The product becomes cheaper as a result of new technology.Thus, a decrease in supply occurs when B. new regulations ...
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Harper Inc. has a defined benefit pension plan. On December 31 (the end of the fiscal year), the company received the PBO report from the actuary. The following information was included in the report: ending PBO, $208,879; benefits paid to retirees, $45,678; interest cost, $8,911. There was no amortization of any prior service costs or amortization of gains/losses. The discount rate applied by the actuary was 7%. What was the beginning PBO?
Answers
Answer: $127,300
Explanation:
The interest cost for the year is based on the Beginning Pension Benefit Obligation (PBO) in the manner:
Interest cost = Beginning PBO * Discount rate
Beginning PBO can therefore be calculated as:
8,911 = Beginning PBO * 7%
Beginning PBO = 8.911 / 7%
Beginning PBO = $127,300
Mandatory spending refers to programs in the U.S. federal budget that
Answers
Answer:
Mandatory spending is simply all spending that does not take place through appropriations legislation. Mandatory spending includes entitlement programs, such as Social Security, Medicare, and required interest spending on the federal debt. Mandatory spending accounts for about two-thirds of all federal spending.
Explanation:
Hope it helps
entrepreneur are usually positive thinker and decision maker why? help me
Answers
Answer:
Entrepreneurs are usually positive thinkers because they have to find business opportunities in the market, and materialize them into economic profit. They need to have some degree of positive belief in order to take the steps necessary to materialize their business ideas.
They also have to be good decision makers because entrepreneurship and running a business are all about taking good decisions that help the firm adapt to the market and stay afloat.
What type of life insurance has cash value
Answers
some opening and closing shift associates are upset with how each group is leaving their areas. They disagree on who is responsible for each task.
Answers
Some opening and closing shift associates are upset with how each group is leaving their areas because they disagree on who is responsible for each task and that cause a conflict.
What is a conflict ?Conflict can be described as the disagreement that do exist between two or more parties as a result of not reaching agreement or different point of view on a particular point.
It should be noted that Some opening and closing shift associates are upset with how each group is leaving their areas because they disagree on who is responsible for each task and that cause a conflict.
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describe why most countries are described as having a mixed economy
Answers
Explanation:
A mixed economic system is a system that combines aspects of both capitalism and socialism. A mixed economic system protects private property and allows a level of economic freedom in the use of capital, but also allows for governments to interfere in economic activities in order to achieve social aims.