On January 2,2014,the Clapton Studios Leased Six Computers for Use

question 5

Essay

On January 2,2014,the Clapton Studios leased six computers for use in the engineering department.The lease period is for 13 years and the estimated economic life of the leased property is 15 years.The lease does not contain automatic title transfer or a bargain purchase option.Lease payments are $11,000 per year,payable each December 31.The incremental borrowing rate for Clapton is 12 percent and the implicit interest rate (known by Clapton)is 10 percent.The company uses straight-line depreciation for this type of equipment.
Provide the necessary journal entries to record the transactions for Clapton for the period January 2,2014 through December 31,2015.

Recognize the characteristics and requirements of managerial accounting reports versus financial accounting reports.

Understand the importance of managerial accounting in planning, controlling, and decision making.

Identify the different phases of the management process and the role of managerial information in these phases.

Understand the significance of sustainability practices and measures within managerial accounting.

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Definitions:

Prejudice

Preconceived opinion or judgment about someone or something that is not based on reason or actual experience.

External Attributions

The process of attributing the cause of behavior to situational factors outside a person.

Lowball Technique

A persuasive tactic in which an initially favorable offer is made, but then terms are changed to be less favorable once initial commitment is achieved.

Reciprocity Norm

A social norm that expects individuals to respond to each other in kind, favoring actions that have been beneficial to them.