AC 302

AC 302 WEEK 6 Exercise 21 Question 1 On January 1 2014 Burke Corporation signed a 5year noncancelable lease for a machine. The terms of the lease called for Burke to make annual payments of $9,938 at the beginning of each year, starting January 1, 2014. The machine has an estimated useful life of 6 years and a $5,220 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Burke uses the straight-line met

AC 302 WEEK 6 Brief Exercise 21 Question 9 Indiana Jones Corporation enters into a 5 year lease of equipment on January 1 2014 which requires 5 annual payments of $35,070 each beginning January 1, 2014. In addition, Indiana Jones guarantees the lessor a residual value of $20,770 at lease-end. The equipment has a useful life of 5 years. Prepare Indiana Jones’ January 1, 2014, journal entries assuming an interest rate of 11%. (Credit acc

AC 302 WEEK 5 Multiple Choice Questions IFRS Multiple Choice Question 06 The International Accounting Standards Board has proposed changes to IFRS pension accounting including all of the following except IFRS Multiple Choice Question 08 Your answer is correct. Midland Company follows U.S. GAAP for its external financial reporting whereas Bailey Company follows IFRS for its external financial reporting. Both companies have de

AC 302 WEEK 5 Willy Exercise AND Problem Brief Exercise 20 Question 7 Shin Corporation had a projected benefit obligation of $3,177,400 and plan assets of $3,360,600 at January 1, 2014. Shin also had a net actuarial loss of $462,620 in accumulated OCI at January 1, 2014. The average remaining service period of Shin’s employees is 7 years. Exercise 20-12 Ferreri Company received the following selected information from its pensio

AC 302 Week 6 Quiz 4 Question Haystack, Inc. manufactures machinery used in the mining industry. On January 2, 2015 it leased equipment with a cost of $320,000 to Silver Point Co. The 5-year lease calls for a 10% down payment and equal annual payments of $146,518 at the end of each year. The equipment has an expected useful life of 5 years. Silver Point’s incremental borrowing rate is 10%, and it depreciates similar equipment using the

AC 302 Week 6 Quiz 3 Question On December 31, 2015, Kuhn Corporation leased a plane from Bell Company for an eight-year period expiring December 30, 2022. Equal annual payments of $300,000 are due on December 31 of each year, beginning with December 31, 2015. The lease is properly classified as a capital lease on Kuhn’s books. The present value at December 31, 2015 of the eight lease payments over the lease term discounted at 10% is $1,

AC 302 Week 6 Quiz 2 Question The methods of accounting for a lease by the lessee are

AC 302 Week 6 Quiz 100% Correct Question 1 On December 31 2014 Lang Corporation leased a ship from Fort Company for an eight-year period expiring December 30, 2022. Equal annual payments of $300,000 are due on December 31 of each year, beginning with December 31, 2014. The lease is properly classified as a capital lease on Lang ‘s books. The present value at December 31, 2014 of the eight lease payments over the lease term discounted at 10

AC 302 Week 5 Discussion Vickie Plato accounting clerk in the personnel office of Streisand Corp has begun to compute pension expense for 2016 but is not sure whether or not she should include the amortization of unrecognized gains/losses. She is currently working with the following beginning-of-the-year present values for the projected benefit obligation and market-related values for the pension plan: Projected Plan

AC 302 Week 4 Quiz 5 Question The projected benefit obligation is the measure of pension obligation that