Walmart Incorporated is the world's largest retailer. A large portion of the premises that the company occupies are leased. Its financial statements revealed the following information: (Amounts in millions) Assets Operating lease right-of-use assets, net Finance lease right-of-use assets, net Liabilities Current liabilities: Operating lease obligations due within one year Finance lease obligations due within one year Long-term debt: Long-term operating lease obligations Long-term finance lease obligations July 31, 2020 July 31, 2019 $ 16,869 4,843 $ 17,239 3,949 1,734 549 1,795 439 15,669 4,673 16,079 3,915 Required: 1. The net asset "Finance lease right-of-use assets, net" has a July 31, 2020 balance of $4,843 million. Liabilities for these leases total $5,222 ($549 +$4,673). Why do the asset and liability amounts differ? 2. Prepare a journal entry that summarizes Walmart's finance lease payments for the twelve months ended July 31, 2020. Walmart's income statement reports finance lease interest of $331 million. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a journal entry that summarizes Walmart's finance lease payments for the twelve months ended July 31, 2020. Walmart's income statement reports finance lease interest of $331 million. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (ie 10.00 000 should he entered as 10)
Walmart Incorporated is the world's largest retailer. A large portion of the premises that the company occupies are leased. Its financial statements revealed the following information: (Amounts in millions) Assets Operating lease right-of-use assets, net Finance lease right-of-use assets, net Liabilities Current liabilities: Operating lease obligations due within one year Finance lease obligations due within one year Long-term debt: Long-term operating lease obligations Long-term finance lease obligations July 31, 2020 July 31, 2019 $ 16,869 4,843 $ 17,239 3,949 1,734 549 1,795 439 15,669 4,673 16,079 3,915 Required: 1. The net asset "Finance lease right-of-use assets, net" has a July 31, 2020 balance of $4,843 million. Liabilities for these leases total $5,222 ($549 +$4,673). Why do the asset and liability amounts differ? 2. Prepare a journal entry that summarizes Walmart's finance lease payments for the twelve months ended July 31, 2020. Walmart's income statement reports finance lease interest of $331 million. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a journal entry that summarizes Walmart's finance lease payments for the twelve months ended July 31, 2020. Walmart's income statement reports finance lease interest of $331 million. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (ie 10.00 000 should he entered as 10)
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter7: Financial Activities
Section: Chapter Questions
Problem 18PC
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Transcribed Image Text:Walmart Incorporated is the world's largest retailer. A large portion of the premises that the company occupies are leased. Its financial
statements revealed the following information:
(Amounts in millions)
Assets
Operating lease right-of-use assets, net
Finance lease right-of-use assets, net
Liabilities
Current liabilities:
Operating lease obligations due within one year
Finance lease obligations due within one year
Long-term debt:
Long-term operating lease obligations
Long-term finance lease obligations
July 31, 2020 July 31, 2019
$ 16,869
4,843
$ 17,239
3,949
1,734
549
1,795
439
15,669
4,673
16,079
3,915
Required:
1. The net asset "Finance lease right-of-use assets, net" has a July 31, 2020 balance of $4,843 million. Liabilities for these leases
total $5,222 ($549 +$4,673). Why do the asset and liability amounts differ?
2. Prepare a journal entry that summarizes Walmart's finance lease payments for the twelve months ended July 31, 2020. Walmart's
income statement reports finance lease interest of $331 million.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Prepare a journal entry that summarizes Walmart's finance lease payments for the twelve months ended July 31, 2020. Walmart's
income statement reports finance lease interest of $331 million.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in
millions (ie 10.00 000 should he entered as 10)
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