Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the city of brock’s water enterprise fund leases

The city of Brock’s Water Enterprise Fund leases water treatment equipment. The life of the noncancel-lable...

60.1K

Verified Solution

Question

Accounting

The city of Brock’s Water Enterprise Fund leases water treatmentequipment. The life of the noncancel-lable lease is 10 years, andthe expected life of the equipment is 12 years. Using an 8 percentinterest rate, the present value of the lease payments is $905,861.The first payment of $125,000 is due when the lease begins, January5, 2018. An additional payment is due on January 5th for each ofthe next 9 years. Prepare journal entries to record:

1. The lease of the equipment on January 5, 2018.

2. The first lease payment on January 5, 2018.

3. Amortization expense for fiscal year ending December 31,2018

4. The second lease payment on January 5, 2019

Answer & Explanation Solved by verified expert
4.1 Ratings (486 Votes)
    See Answer
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

Biology
1.2K views

An aminoacyl-tRNA exhibits which one of the following characteristics? A. It is produced by a synthetase that is...

Basic Math
1.2K views

A Gallup Poll showed that 44% of Americans are satisfied with the way things are going...

Advance Math
1.2K views

y'' - 4y' + 4y = e^2t + 2e^-2t + 14t^4 - sin2t + cost...

Biology
1.2K views

Other than the distance from the sun, a planet's atmospheric temperature can be affected by...

Biology
1.2K views

How did the Cold war contribute with the Truman Doctrine and the marshall s plan...

Basic Math
1.2K views

Select the correct answer from each drop-down menu.In a circle with a radius of 7...

Accounting
1.2K views

6. Trend analysis is analysis in which all items are presented as a percentage of...

Accounting
1.2K views

Renaldo has pretax book income of $874,000. The following expenses were subtracted in arriving at...

Accounting
1.2K views

20

Accounting
1.2K views

Required information [The following information applies to the questions displayed below.] Sedona Company set the...

Accounting
1.2K views

Associated press Online provided information from a fiscal analyst stating that during the past 20...

Finance
1.2K views

Which one of the following statements about Security Market Line (SML) is incorrect? 0 If...