Exhibit 20-5 The Baltimore, Inc entered into a five-year lease with the Waugh Chapel Company on January 1, 2016. Baltimore, the lessor, will require that five equal annual payments of $25,000 be made at the beginning of each year. The first payment will be made on January 1, 2016. The lease contains a bargain purchase option price of $12,000, which the lessee may exercise on December 31, 2020
The lessee pays all executory costs. The cost of the leased property and its normal selling price are $95,000 and $118,236, respectively. Collectibility of the future lease payments is reasonably assured, and the lessor does not expect to incur any future costs related to the lease. Present value factors for a 7% Present value of $1 for n = 1 0.934579 Present value of $1 for n = 5 0.712986 Present value of an ordinary annuity for n = 5 4.100197 Present value of an annuity due for n = 5 4.387211 ? Refer to Exhibit 20-5. If Baltimore requires a 7% annual return, what is the correct amount of interest revenue to be recognized by Baltimore for 2016 (round the answer to the nearest dollar)?
A) $7,774
B) $7,175
C) $6,527
D) $5,928
C
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Network Industries, Inc, wants to monitor its employees' electronic communications. To avoid liability under laws related to employee monitoring, Network should announce the monitoring to
a. no one. b. the employees. c. the government. d. the public generally.
Which of the following shows how the cash payment and recognition of interest expense affects the elements of the financial statements when a bond is issued at a discount? Assets=Liab.+Stk.EquityRev.?Exp.=Net Inc.Stmt. ofCash FlowsA.?=?+NANA?NA=NA?IAB.?=++?NA?+=??OAC.?=++?NA?+=??IAD.?=NA+?NA?+=??OA
A. Option A B. Option B C. Option C D. Option D
Which of the following is not true regarding unearned revenues?
A. The adjusting entry for unearned revenues increases revenues and decreases liabilities. B. The adjusting entry for unearned revenues increases assets and increases revenues. C. As they are earned, they become revenues. D. They are payments received in advance of services performed. E. They are liabilities.
Explain the Johari Window.
What will be an ideal response?