Unformatted text preview: operating leases as capital leases. (Ignore taxes) c Make the journal entry that would be required on 12/31/2010 to account for the operating lease payment assuming the operating leases were being accounted for as capital leases (Note, this is the second year). d Calculate the ratio on long-term debt to shareholder’s equity and the ratio of total liabilities to total assets at 12/31/08 using the reported balance sheet data. Recalculate them assuming the operating leases were being accounted for as capital leases. Comment on the differences. (Ignore taxes)...
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- Spring '11
- Balance Sheet, $1,100, $1,050, $1,030, $1,020, $1,040