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

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

60.1K

Verified Solution

Question

Accounting

Oriole Co. leased machinery from Young, Inc. on January 1, 2017. The lease term was for 8 years, with equal annual rental payments of $5,000 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 Oriole is reasonably certain it will exercise as it believes 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 $40,000. The implicit rate of the lease is not known to Oriole. Orioles incremental borrowing rate is 10%. Prepare Orioles 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 0 decimal places, e.g. 5,275.)

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

Finance
1.2K views

Dominos balance sheet Fiscal year is January-December. All values USD millions. 2014 2015 2016 2017 2018 5-year trend Cash & Short Term Investments 151.81M 314.39M 169.31M 227.53M 237.42M Cash...

Physics
1.2K views

A football is kicked at ground level with a speed of 25 m/s at an angle...

Finance
1.2K views

You are given the following information for Smashville, Inc.   Cost of goods sold: $ 184,000 Investment income: $ 1,600 Net sales: $ 387,000 Operating expense: $ 88,000 Interest expense: $ 7,400 Dividends: $ 6,000 Tax...

Calculus
1.2K views

5 The deck of a bridge is suspended 275 feet above a river If a...

Algebra
1.2K views

Which one of the following is the solution to the open sentence 15 x 10

Accounting
1.2K views

Kingbird Company has gathered the following information about its product. Direct materials: Each unit of...

Accounting
1.2K views

Hank Itzek manufactures and sells homemade wine, and he wants to develop a...

Accounting
1.2K views

United Airline recorded a record $15 billion loss due to the pandemic and dramatic decline...

Accounting
1.2K views

Write down the differences between perpetual and periodic method with examples in your own words....

Accounting
1.2K views

Need help answering the questions Cash 24,000 Accounts Receivable 39,000 Inventory...

Accounting
1.2K views

Display for each product the product name and the total sales that is greater than...

Accounting
1.2K views

The following incomplete balance sheet for the Sanderson Manufacturing Company was prepared by the company's...