i have some questions here and after i finished i dont know i am right or wrong. pls help to answer and discuss thx for ur help
1. A loan has a principal balance of 100000 beginning sep 1 2013 with an annual interest rate of 6%. There are 36 monthly payments of 3040 beginning oct 1 2013 please compute the interest income to be recognized on sep 30 2013 for the first month and what are the accounting entries that will be recorded to recognize the income?
2 A customer pays rent annually of 100000 on a transaction classified as an operation lease. This payment is made on Jan 1 of each year. XXX has an Oct 31 fiscal year-end. pls calculate the prepaid rent at the end of the first year.
3. XXX purchased a tractor for 100000 to be leased to a customer on an operating lease. The lease begin date is sep1 2013. The equipment depreciates on a straight-line basis. The term of the lease is 60 months. The value of the equipment at the end of the lease will be 30000. XXX sells the equipment on sep 1 2015 prior to the end of the lease for 75000 pls calculate the gain or loss on sale of equipment.
1. A loan has a principal balance of 100000 beginning sep 1 2013 with an annual interest rate of 6%. There are 36 monthly payments of 3040 beginning oct 1 2013 please compute the interest income to be recognized on sep 30 2013 for the first month and what are the accounting entries that will be recorded to recognize the income?
2 A customer pays rent annually of 100000 on a transaction classified as an operation lease. This payment is made on Jan 1 of each year. XXX has an Oct 31 fiscal year-end. pls calculate the prepaid rent at the end of the first year.
3. XXX purchased a tractor for 100000 to be leased to a customer on an operating lease. The lease begin date is sep1 2013. The equipment depreciates on a straight-line basis. The term of the lease is 60 months. The value of the equipment at the end of the lease will be 30000. XXX sells the equipment on sep 1 2015 prior to the end of the lease for 75000 pls calculate the gain or loss on sale of equipment.