Required information Skip to question [The following information applies to the questions displayed below.] On November 1, 2022, Gordon Company collected $9,660 in cash from its tenant as an advance rent payment on its store location. The six-month lease period ends on April 30, 2023, at which time the contract may be renewed. c. Suppose the advance collection received on November 1, 2022, covered an 24-month lease period at the same amount of rent per month. How should Gordon Company report the unearned rent amount on its December 31, 2022, balance sheet? Current liability? Noncurrent liability?
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Required information
Skip to question
[The following information applies to the questions displayed below.]
On November 1, 2022, Gordon Company collected $9,660 in cash from its tenant as an advance rent payment on its store location. The six-month lease period ends on April 30, 2023, at which time the contract may be renewed.
c. Suppose the advance collection received on November 1, 2022, covered an 24-month lease period at the same amount of rent per month. How should Gordon Company report the unearned rent amount on its December 31, 2022, balance sheet?
Current liability?
Noncurrent liability?
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- The GAP Inc. discloses the following schedule to its fiscal 2018 (ended February 2, 2019) 10-K report relating to its leasing to its leasing activities. Note: Complete the entire question in Excel and format each answer to two decimal places. Then enter the answers into the provided spaces below with two decimal places. The aggregate minimum noncancelable annual lease payments under leases in effect on February 2, 2019, are as follows: Fiscal Year ($ millions) 2019 $1,098 2020 1,043 2021 847 2022 694 2023 512 Thereafter Total minimum lease commitments $5,638 1,444 Compute the present value of GAP's operating leases using the following assumptions Assmption Discount rate Round remaining lease term to the nearest whole year Year Present Value 1 $ 0 2 0 3 0 4 0 5 0 >5 0 $ 0 6%Help Save & Ex On September 30, 2024, Truckee Garbage leased equipment from a supplier and agreed to pay $140,000 annually for 15 years beginning September 30, 2025. Generally accepted accounting principles require that a liability be recorded for this lease agreement for the present value of scheduled payments. Accordingly, at inception of the lease, Truckee recorded a $1,405,261 lease liability. Required: Determine the interest rate implicit in the lease agreement. Note: Use tables, Excel, or a financial calculator. Round your answer to 1 decimal place. (FV of $1, PV of $1, EVA of $1, PVA of $1, EVAD of $1 and PVAD of $1) Interest rate implicit %On April 1, 2021, Primer Corp. signs a five-year lease to use office space. The present value of the monthly lease payments Is $100,000. Record the lease. (If no entry Is requlred for a particular transaction/event, select "No Journal Entry Requlred" in the first account fleld.) View transaction list Journal entry worksheet 1 Record the lease. Note: Enter debits before credits. Date Account Title Debit Credit April 01, 2021 Record entry Clear entry View general journal
- On September 30, 2024, Truckee Garbage leased equipment from a supplier and agreed to pay $125,000 annually for 15 years beginning September 30, 2025. Generally accepted accounting principles require that a liability be recorded for this lease agreement for the present value of scheduled payments. Accordingly, at inception of the lease, Truckee recorded a $1,214,031 lease liability. Required: Determine the interest rate implicit in the lease agreement. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Interest rate implicit % 2On January 1, 2019 Zhavy Co. leased office furniture from Cherry Co. under operating lease. Payments on the will be made as follows: December 31, 2019 230,000 December 31, 2020 250,000 December 31, 2021 270,000 As an inducement to enter the lease, CHERRY CO. granted ZHAVY CO. the first six months of the lease rent-free. SINAG also paid the following: Initial direct cost 100,000 Security deposit 50,000 Lease Bonus 60,000 Insurance and Maintenance cost 25,000 What amount of rental income should be reported in the income statement of CHERRY CO. for the year ended December 31, 2019?19 On September 30, 2024, Truckee Garbage leased equipment from a supplier and agreed to pay $125,000 annually for 15 years beginning September 30, 2025. Generally accepted accounting principles require that a liability be recorded for this lease agreement for the present value of scheduled payments. Accordingly, at inception of the lease, Truckee recorded a $1,214,031 lease liability. Determine the interest rate implicit in the lease agreement. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
- On May 1, 2021, ABC Company leased furniture and fixtures from XYZ Company under a one-year contract. The lease payments are as follows: · First 2 months at P12,000 per month· Next 4 months at P18,000 per month· Next 3 months at P15,000 per month· Last 3 months at P10,000 per month After the first year, the rent continues at P8,000 per month. What are the amounts reported in ABC financial statements for the year 2021? A. Rent revenue of P114,000 and Rent receivable of P12,000 B. Rent revenue of P114,000 and Unearned rent of P12,000 C. Rent revenue of P126,000 and Rent receivable of P12,000 D. Rent revenue of P126,000 and Unearned rent of P12,000In January 1,2020, Orange Corporation leased a building to Juce Company under a four-year operating lease. The monthly rentals for 2020, 2021, 2022 and 2023 are as follows: P100,000, P150,000, P200,000 and P250,000, respectively. Rentals are payable at the end of each month. All rental payments within the year were made when due. What amount should Orange Corporation report as rent receivable on December 31, 2020?On May 1, 2021, ABC Company leased furniture and fixtures from XYZ Company under a one-year contract. The lease payments are as follows: First 2 months at P12,000 per month Next 4 months at P18,000 per month Next 3 months at P15,000 per month Last 3 months at P10,000 per month After the first year, the rent continues at P8,000 per month. What are the amounts reported in ABC financial statements for the year 2021?
- On January 1, 2021, Sweetwater Furniture Company leased office space under a 21-year operating lease agreement. The contract calls for annual lease payments on December 31 of each year. The payments are $10,000 the first year and increase by $500 per year. Benefits expected from using the office space are expected to remain constant over the lease term.Required:Record Sweetwater’s lease payment at December 31, 2025 (the fifth lease payment), and December 31, 2038 (the fifteenth lease payment).On January 1, 2021, Sweetwater Furniture Company leased office space under a 21-year operating lease agreement. The contract calls for annual lease payments on December 31 of each year. The payments are $24,250 the first year and increase by $475 per year. Benefits expected from using the office space are expected to remain constant over the lease term.Required:COMPUTE Sweetwater's lease payment at December 31, 2025 (the fifth lease payment), and December 31, 2035 (the fifteenth lease payment). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) A)compute Sweetwater's lease payment at December 31, 2025 (the fifth lease payment). B)compute Sweetwater's lease payment at December 31, 2035 (the fifteenth lease payment).25. On January 1, 2019, Rapp company leased a new machine to Lake company. The lease expires on January 1, 2024. The annual rental is 900,000. Additionally on January 1, 2019, Lake company paid 500,000 to Rapp company as a lease bonus and 250,000 as a security deposit to be refunded upon the expiration of the lease. What amount should be reported as rent revenue for the current year?