1 / 3

FINANCIAL REPORTING / TUTORIALOUTLET DOT COM

MANAGEMENT DECISIONS AND FINANCIAL REPORTING<br>LEASCO COMPANY<br>ACCOUNTING FOR LEASES<br>

albert0104
Download Presentation

FINANCIAL REPORTING / TUTORIALOUTLET DOT COM

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. FINANCIAL REPORTING / TUTORIALOUTLET DOT COM

  2. FINANCIAL REPORTING / TUTORIALOUTLET DOT COM Financial reporting FOR MORE CLASSES VISIT www.tutorialoutlet.com MANAGEMENT DECISIONS AND FINANCIAL REPORTING LEASCO COMPANY ACCOUNTING FOR LEASES On January 1, 2008, Leasco (lessee) signed a noncancelable agreement to lease equipment from Rentco(lessor) for 10 year period. Annual payments of $58,588 are due at the end of each year (starting December 31, 2008). Assume both firms use straight-line depreciation. 1. Assume that the lease does not meet any of the four criteria applicable to capital leases. Prepare the lease entries during 2008 and 2009 for Leasco. 2. Assume that ownership of the equipment will be transferred to Leasco on December 31, 2017 (i.e., the end of the lease term) with no required additional payment; however, the equipment is expected to be scrapped at that time at no salvage value.

  3. FINANCIAL REPORTING / TUTORIALOUTLET DOT COM Thank you

More Related