Chapter undefined, Problem

ACCOUNTING QUESTION On January 1, 2025, XYZ Enterprises had the following transactions: 1. The owner invested $50.000 in cash to start the business. 2. Purchased office equipment for $12.000 on credit. 3. Paid $2,000 for January rent. 4. Provided services to a client and recived $5,000 in cash. 5. Paid $3,000 to settle part of the office equipment liability. 6. Received a utility bill for $600, to be paid in February. a) Record the journal entries for each of the above transactions.

Carla Vista Leasing Company leases a new machine to Sandhill Corporation. The machine has a cost of $65,000 and fair value of $94,500. Under the 3-year, non-cancelable contract, Sandhill will receive title to the machine at the end of the lease. The machine has a 3-year useful life and no residual value. The lease was signed on January 1, 2025. Carla Vista expects to earn an 8% return on its investment, and this implicit rate is known by Sandhill. The annual rentals are payable on each December 31, beginning December 31, 2025. Click here to view factor tables. (b). Prepare an amortization schedule that would be suitable for both the lessor and the lessee and that covers all the years involved. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to O decimal places e.g. 5,275.) Interest (8%) Revenue/ Rent Receipt/Payment Reduction of Principal Expense Receivable/Liability (c) Prepare the journal entry at commencement of the…

Assume that IBM leased equipment that was carried at a cost of $97,000 to Crane Company. The term of the lease is 5 years beginning December 31, 2024, with equal rental payments of $30,200 beginning December 31, 2024. The fair value of the equipment at commencement of the lease is $128,040. The equipment has a useful life of 5 years with no salvage value. The lease has an implicit interest rate of 9%, no bargain purchase option, and no transfer of title. Collectibility of lease payments for IBM is probable. Prepare IBM's December 31, 2024, journal entries at commencement of the lease. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to O decimal places e.g. 5,275.) Click here to view…