Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. sage hill corporation recorded a right-of-use asse

Sage Hill Corporation recorded a right-of-use asset for $312,900 as a result of a finance...

80.2K

Verified Solution

Question

Accounting

image

Sage Hill Corporation recorded a right-of-use asset for $312,900 as a result of a finance lease on December 31, 2019. Sage Hill's incremental borrowing rate is 11%, and the implicit rate of the lessor was not known at the commencement of the lease. Sage Hill made the first lease payment of $ 59,822 on on December 31, 2019. The lease requires 7 annual payments. The equipment has a useful life of 7 years with no residual value. Prepare Sage Hill's December 31, 2020, entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places e.g. 5,275.) Date Account Titles and Explanation Debit Credit December 31, 2020 (To record interest expense) December 31, 2020 (To record amortization of the right-of-use asset)

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

Chemistry
1.2K views

10. A mixture of 0.08729 mol of H2O, 0.1041 mol of CH4, 0.08069 mol of CO,...

Biology
1.2K views

An ethnic group is a group of people who share a common culture, including traditions,...

Biology
1.2K views

D E O a A Ob B O c C d D A e E...

Physics
1.2K views

If current is doubled the deflection is also 14 f doubled in aga 1 Tangent...

Geometry
1.2K views

The first four terms for the recursion formula t? = 8, t? = t-1+n areA...

Statistics
1.2K views

Find the values of x and y Round answers to the nearest tent 12 cm...

Accounting
1.2K views

Chuba Corporation utiliza un sistema de costos estndar en el que los costos indirectos...

Accounting
1.2K views

Please show all calculations. 11. Alexandr purchased land in...

Accounting
1.2K views

Saved Graham Corporation's budgeted production schedule, by quarters, for the coming year is as follows:...

Accounting
1.2K views

16. Revenue budget: calculating gross revenues. Calculate ZMG Hospitalists Practice's January February, and March commercial...

Accounting
1.2K views

2. At the end of the current year, a company has Accounts Receivable of $189,000...

Accounting
1.2K views

Carla Vista Inc. uses the average cost formula in a perpetual inventory system. (Use unrounded...