Three different lease transactions are presented below for Manitoba Enterprises. Assume that all lease transactions...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Three different lease transactions are presented below for Manitoba Enterprises. Assume that all lease transactions start on January Manitoba does not receive title to the properties, either during the lease term or at the end of it The yearly rental for each of the leases is paid at the beginning of each year. Manitoba Enterprises prepares its financial statements using ASPE. ManufacturingEquipment Vehicles OfficeEquipment Lease term years years years Estimated economic life years years years Yearly rental payment $ $ $ Fair market value of leased asset $ $ $ Present value of lease rental payments $ $ $ Interest rate Instructions Which of the above leases are operating leases and which are capital leases? Explain. How should the lease transaction for each of the above assets be recorded on January Record the depreciation for each of the leases and accrue any interest on December The company uses straightline depreciation. Describe how the lease transaction would be reported on the income statement and balance sheet for each of the above assets.
Three different lease transactions are presented below for Manitoba Enterprises. Assume that all lease transactions start on January Manitoba does not receive title to the properties, either during the lease term or at the end of it The yearly rental for each of the leases is paid at the beginning of each year. Manitoba Enterprises prepares its financial statements using ASPE.
ManufacturingEquipment
Vehicles
OfficeEquipment
Lease term
years
years
years
Estimated economic life
years
years
years
Yearly rental payment
$
$
$
Fair market value of leased asset
$
$
$
Present value of lease rental payments
$
$
$
Interest rate
Instructions
Which of the above leases are operating leases and which are capital leases? Explain.
How should the lease transaction for each of the above assets be recorded on January
Record the depreciation for each of the leases and accrue any interest on December The company uses straightline depreciation.
Describe how the lease transaction would be reported on the income statement and balance sheet for each of the above assets.
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!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.