Leasing Computers at Persistent Learning Case Solution

Posted by jeenniwill on April 18th, 2018

Leasing Computers at Persistent Learning Case Solution

Recently publicPersistent Learning is purchasing critical computer components. They have to decide how the lease or the acquisition choice will effect their financial statements, and the consumer market will respond with respect to their prior forecasted earnings and rival’s accounting.

Excel Calculations

Effect on Income Statement

Effect on Cash Flow

Lease analysis

Journal entries

Questions Covered

How would the company account for the “fair market value” and “one dollar purchase” leases for the computers, over the course of the next three years? Classify the leases as operating or capital lease, and for each year, show journal entries or T-accounts.

Directionally, what are the effects on the balance sheet, income statement, and statement of cash flow? 

The company is trying to decide between the “fair-market value” lease and the “one dollar purchase” lease. Which leasing alternative would you choose? Why?

Why do the competitors own their own computers?

 


Related Articles

Leasing Computers at Persistent Learning Case Solution
Leasing Computers at Persistent Learning Case Solution Recently publicPersistent Learning is purchasing critical computer components. They have to decide how the lease or the acquisition choice will effect their financial statements, and the consumer market will respond with respect to their prior forecasted earnings and rival’s accounting.&...

Neon Computers: We serve the computers that serve you
The world is now fully dependant on the computers which have now control over every process in every industry. Thus the computers need to be fully operational at all times, and help in the procedures. They need full service at all times, and need utter care so that the data stored in them does not get damaged, and protect the high quality data which may be c...

Options in car leasing UK and van leasing UK
After quite a few years it is now a great time to buy a car or a van in the UK. Car and van sales throughout the UK have picked up and 2013 saw the best in new vehicle registrations since 2009. Compared to 2012 car sales figures in 2013 went up by more than 10% and van sales figures went up by more than 13% in the same period. And as more new cars and vans w...

Also See: Recently Publicpersistent, Purchasing Critical, Publicpersistent Learning, Persistent Learning, Lease, Learning, Computers

Top Searches - Trending Searches - New Articles - Top Articles - Trending Articles - Featured Articles - Top Members

Link To Directory

Developed by Interfuse - Copyright 2010 - 2018 Uberant.com