Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. wildhorse co. leased machinery from young, inc. on

Wildhorse Co. leased machinery from Young, Inc. on January 1, 2017. The lease term was...

60.1K

Verified Solution

Question

Accounting

image
Wildhorse Co. leased machinery from Young, Inc. on January 1, 2017. The lease term was for 8 years, with equal annual rental payments of $5,200 at the beginning of each year. In addition, the lease provides an option to purchase the machinery at the end of the lease term for $3,000, which Wildhorse is reasonably certain it will exercise as it belleves the fair value of the machinery will be at least $5,000. The machinery has a useful life of 10 years and a fair value of $45,000. The implicit rate of the lease is not known to Wildhorse. Wildhorse's incremental borrowing rate is 9%. Prepare Wildhorse's 2017 journal entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to o decimal places, e.g. 5,25. Date Account Titles and Explanation Debit Credit (To record lease liability) (To record lease payment) 12/31/17 (To record interest expense) 12/31/17 Version 4.24

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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

What is the importance of Light Dependent and Light Independent?

Biology
Q

\"A borrower is interested in comparing the monthly payments on two otherwise equivalent 30 year FRMs....

Finance
Q

Show what happens when the symmetry is not imposed in FIR filters. what happens to the...

Electrical Engineering
Q

Look online and find an article published within the past 4 weeks that includes a reference...

Basic Math
Q

Dimples is an autosomal dominant trait and no dimples is recessive.Brown eye color is autosomal...

Biology
Q

3 P 1 according to the partial construction shown what is the next step in...

Basic Math
Q

Consider the following function. (If an answer does not exist, enter DNE.)h(x) = (x +...

Calculus
Q

Use row reduction to determine which of the following matrices have an inverse For those...

Algebra
Q

please i beg you show workings ...

Accounting
Q

9 Trim Corporation acquired 100 percent of Round Corporation's voting common stock on January 1,...

Accounting
Q

Lincoln, Inc., which uses a volume-based cost system, produces cat condos that sell for $140...

Accounting
Q

Issuing equities during bubble episodes creates market value? Explain.

Finance