Rita's balance sheet for at 31/12/X1 is shown below a) b) c) Buildings Equipment Inventory Cash...

 

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Rita's balance sheet for at 31/12/X1 is shown below a) b) c) Buildings Equipment Inventory Cash & Receivables Assets £'000 2,100 £1NV Shares 450 Reserves 150 10% Loan Stock 1.075 Payables 3,775 Equity & Liabilities Not included above was a 4-year lease contract for new plant signed on 01/01/X1 requiring annual payments of £30,000 in arrears (yearly interest rates are 7.5%). Calculate the lease repayments schedule for the new Plant, showing interest, repayments, opening and closing liabilities. Prepare an amended balance sheet at 31/12/X1 for Rita to include the new leased plant. Contrast Finance Leases with Operating Leases £'000 1800 975 600 400 3,775 [10 marks] [10 marks] [05 marks] Rita's balance sheet for at 31/12/X1 is shown below a) b) c) Buildings Equipment Inventory Cash & Receivables Assets £'000 2,100 £1NV Shares 450 Reserves 150 10% Loan Stock 1.075 Payables 3,775 Equity & Liabilities Not included above was a 4-year lease contract for new plant signed on 01/01/X1 requiring annual payments of £30,000 in arrears (yearly interest rates are 7.5%). Calculate the lease repayments schedule for the new Plant, showing interest, repayments, opening and closing liabilities. Prepare an amended balance sheet at 31/12/X1 for Rita to include the new leased plant. Contrast Finance Leases with Operating Leases £'000 1800 975 600 400 3,775 [10 marks] [10 marks] [05 marks]

Answer rating: 100% (QA)

a Lease repayments schedule for the new Plant Year 1 Interest 30000 x 75 2250 Repayment 30000 2250 2... View the full answer