Assume that ibm leased equipment that was carried at a cost of $195,000 to sharon swander company. the term of the lease is 7 years beginning january 1, 2017, with equal rental payments of $33,816 at the beginning of each year. all executory costs are paid by swander directly to third parties. the fair value of the equipment at the inception of the lease is $195,000. the equipment has a useful life of 7 years with no salvage value. the lease has an implicit interest rate of 7%, no bargain-purchase option, and no transfer of title. collectibility is reasonably assured with no additional cost to be incurred by ibm. assume the direct-financing lease was recorded at a present value of $195,000. prepare ibm’s december 31, 2017, entry to record interest.

Fanning books buys books and magazines directly from publishers and distributes them to grocery stores. the wholesaler expects to purchase the following inventory: april may june required purchases (on account) $ 111,000 $ 131,000 $ 143,000 fanning books accountant prepared the following schedule of cash payments for inventory purchases. fanning books suppliers require that 85 percent of purchases on account be paid in the month of purchase; the remaining 15 percent are paid in the month following the month of purchase. required complete the schedule of cash payments for inventory purchases by filling in the missing amounts. determine the amount of accounts payable the company will report on its pro forma balance sheet at the end of the second quarter.

Adecision is made at the margin when each alternative considers

Investors who put their own money into a startup are known as a. mannequins b. obligators c. angels d. borrowers