Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on january 1,2020, oriole company leased equipment

On January 1,2020, Oriole Company leased equipment to Flynn Corporation. The following information pertains to...

80.2K

Verified Solution

Question

Accounting

image
On January 1,2020, Oriole Company leased equipment to Flynn Corporation. The following information pertains to this lease. 1. The term of the non-cancelable lease is 6 ycars. At the end of thelease term, Flynn has the option to purchase the equipment for $2,000, while the expected residual valuc at the end of the lease is $9,000. 2. Equal rental payments are due on January 1 of each vear, beginning in 2020. 3. The fair value of the equipment on January 1,2020 , is $185,000, and its cost is $120,000. 4. The equiprnent has an cconomic life of 8 years. Flym depreciates all of its equipment on a straight-line basis. 5. Oriole set the annual rental to ensure a 6% rate of return. Flyn's incremental borrowing rate is B%, and the implicit rate of the lessor is unknown. 6. Collectibility of lease payments by the lessor is probable. Both the lestor and the lessee's sccounting periods end on December 31. Prepare all the necessary journal entries for Oriole for 2020. (Credit occount titles are automatically indented when the amount is entered. Do not indent manually, Round onswers to 0 decimal places, e.g. 5,275 . Record journal entries in the order presented in the problem.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

How rapidly would the following particles be moving if they all had the same wavelength as a...

Chemistry
Q

1.) Trace the path of a mature oocyte from ovulation to implantation. 2.) Explain how the uterine...

Medical Sciences
Q

Suggest five (5) ways in which the primary stakeholders can influence the Microsoft INC's financial performance....

General Management
Q

When a dairy farmer chooses to breed the cows that give the most milk in...

Biology
Q

The remaining valid use of medicinal leeches is to use them to clean out dead...

Biology
Q

DIOCK OI kg is lying on horizontal surface The static friction between the block and...

Physics
Q

Classify each number below as an integer or not 12 2 76 40 8 N...

Basic Math
Q

A jar contains 8 red marbles, numbered 1 to 8, and 11 blue marbles numbered...

Statistics
Q

3 A dietitian claims that there is difference between male and female who are trying...

Statistics
Q

Lee Company processes 18,000 kilograms of direct materials to produce two...

Accounting
Q

ABC Corporation owned a rental property with aujusted basis of $ 300,000 and fair market...

Accounting
Q

FOB shipping points means that

Accounting