Intermediate accounting by robles empleoanswers chapter 4 vol 2 2009

###;######%;######%;######%;######%;######%;######%;######�<##�###�?##j###

%;######################S#######7&######################@#######@#######7&######7&######%;##############S#######S#######e"##############e"##�###:;######�-

Lease#2,200,000#### Cash##2,200,000####### 1#Cash#600,000#### Rent

Cash##60,000#######Dec 31#Depreciation Expense#212,000#### Accumulated Depreciation##200,000### Machinery for Lease##12,000### (2.2 M �

� 12 mos Monthly rent

b Rent Expense for 2006

36,000 Rent Expense for 2010 (9,000 x

Company2009#####Dec 31#Rent Expense#36,000#### Rent

Payable##36,000##2010#####Mar 1 -#Dec 1 monthly entry#####Rent

Expense#10,000#### Cash##10,000##Dec 31#Rent Expense#8,000#### Rent 12/60 108,000 Payments in 2007 100,000 Increase inrent payable 8,000####Love Corporation2009#####Dec 31#Rent

Receivable#36,000#### Rent Revenue##36,000##2010#####Mar 1 -#Dec 1

monthly entry#####Cash#10,000#### Rent Revenue##10,000##Dec 31#Rent

(Way Company) a

Additional rent 5% (6 M � 5 M) 50,000

Amortization of lease bonus 125,000/10 yrs

12,500 Rent Expense for 2007 1,022,500

b Prepaid Rent Expense 125,000 � 12,500 112,500 Security Deposit

10%) 150,000 x 68301 =

a Rent Revenue (920,000 x 9/12)690,000 Depreciation Expense 3,500,000/6 =

583,333 583,333 x 9/12

Maintenance and other related costs ( 50,000)Income before

(Provident Company) Lessor�s Books2009#####July 1#Equipment For Lease#1,500,000#### Cash##1,500,000##Oct.Rent Revenue##20,000## # # ###Nov 1#Cash#20,000# ### Rent

Revenue##20,000#######Dec 1#Cash#20,000#### Rent Revenue##20,000#######

16,392*#183,608#-## *Adjusted; difference is due to rounding off (b)

Cash##260,000#######Dec 31#Interest Expense#87,516#### Interest

Payable#87,516#### Cash##260,000#######Dec 31#Interest Expense#71,992####

(c)Dec 31#Accumulated

Dec 31#Loss onExpense#16,392####Finance Lease Obligation#183,608#### Leased

(a)

Amortization TableDate#Total Annual Payment#Interest Expense#Reduction in

(c)

Cash##86,680#######Dec 31#Interest Expense#21,556#### Interest

Payable##21,556####### 31#Depreciation Expense#72,289#### AccumulatedDepreciation##72,289## (d) Statement of Financial

Position#2009#2010##Property, Plant and Equipment#### Leased

21,5############################################################################

################################################################################

################################################################################