Financial Accounting 2 Chapter 4.rtf

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Financial Accounting 2 Chapter 4 Solman

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CHAPTER 4LEASESPROBLEMS4-1. (Hope Manufacturing Compan an! C"arit Co.#(1) Le$$or%$ Boo&$ (Hope Manufacturing Co.# '(1')an. 1 Mac"iner for *ea$e '+'((+(((Ca$" '+'((+(((1 Ca$" ,((+(((Rent re-enue 4((+(((.nearne! rent re-enue '((+(((' M/0 1 4((+(((' M 2 3(4 1 ,((+(((1 Mac"iner for *ea$e ,(+(((Ca$" ,(+(((5ec. 315epreciation e2pen$e '1'+(((Accumu*ate! !epreciation '((+(((Mac"ine for *ea$e 1'+(((('.' M 6 '((+(((#/1( '((+(((,(+((( / 0 ear$ 1'+((('(13Tota* '1'+((()an. 1 Ca$" 4((+(((Rent re-enue 4((+((('+(((+((( 2 '(45ec. 315epreciation e2pen$e '1'+(((Accumu*ate! !epreciation '((+(((Mac"ine for *ea$e 1'+(((Le$$ee%$ Boo&$ (C"arit Co.#'(1()an. 1 Rent e2pen$e 4((+(((Prepai! rent '((+(((Ca$" ,((+((('(11)an. 1 Rent e2pen$e 4((+((((7#Ca$" 4((+((Statement of Compre"en$i-e 8ncome9 Hope C"arit(8n pro:t or *o$$ $ection#Rent re-enue 4((+(((5epreciation e2pen$e '1'+(((Rent e2pen$e 4((+(((Statement of ;inancia* Po$ition Hope C"aritMac"ine for *ea$e+ net of accum.!epreciation '+(4 (10+((( 2 '# 1',+(((Tota* *ea$e perio! ? 1' mo$.Mont"* rent e2pen$e 1(+0((@o. of mo$. ;rom Sept. 1 6 5ec. 31+ '(1' 2 4Rent e2pen$e for '(1' 4'+(((7. Rent e2pen$e for '(1' 4'+(((Rent pament$ ma!e !uring '(1' 3(+(((Rent paa7*e at 5ecem7er 31+ '(1' 1'+(((4-3. (;ait" Compan#a. Mont"* renta* pament 1(+(((@o. of pament$ (,(-, mo$ free# 2 04Tota* pament$ 04(+(((Rent e2pen$e for '(1' (04(+((( 2 4/,(# 3,+(((orMont"* renta* 1(+(((Le$$ *ea$e 7onu$ (,(+(((/,( mo$# (1+(((#Rent e2pen$e per mont" A+(((Rent e2pen$e for '(1' (A+((( 2 4# 3,+(((Rent e2pen$e for '(13 (A+((( 2 1'# 1(