Calculate the lease asset and lease liability for Whitehorse Ltd (show workings).

 Prepare journal entries to account for the lease transaction in the books of Whitehorse Ltd from 1 July 2022 to 30 June 2023. (Narrations are not required).  

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Boxhill Ltd has entered into an agreement to lease office equipment to Whitehorse Ltd. The lease agreements details are as follows: Length of lease Commencement date of lease agreement Half-yearly payments, commencing on 31 December 2022 and thereafter on 30 June and 31 December respectively Maintenance cost included in each half-yearly payment Direct cost incurred at the commencement of the lease term on 1 July 2022 Estimated economic life of the office equipment Estimated residual value of the office equipment at the end of its economic life Guaranteed residual value (by the lessee) Interest rate implicit in the lease *Present value factors: PV of an ordinary annuity of $1 Interest rate Periods Assume that the ownership will be transferred to the lessee Whitehorse Ltd at the end of the lease term. 3 456 5% 2.7232 3.5460 4.3295 5.0757 10% 2.4869 3.1699 3.7908 4.3553 Interest rate Periods 3 4 5 6 PV of $1 3 years 1-July-2022 $12,000 $1,000 $2,000 5% 0.8638 0.8227 0.7835 0.7462 5 years $3,000 $6,000 10% per annum 10% 0.7513 0.6830 0.6209 0.5645 Boxhill Ltd has entered into an agreement to lease office equipment to Whitehorse Ltd. The lease agreements details are as follows: Length of lease Commencement date of lease agreement Half-yearly payments, commencing on 31 December 2022 and thereafter on 30 June and 31 December respectively Maintenance cost included in each half-yearly payment Direct cost incurred at the commencement of the lease term on 1 July 2022 Estimated economic life of the office equipment Estimated residual value of the office equipment at the end of its economic life Guaranteed residual value (by the lessee) Interest rate implicit in the lease *Present value factors: PV of an ordinary annuity of $1 Interest rate Periods Assume that the ownership will be transferred to the lessee Whitehorse Ltd at the end of the lease term. 3 456 5% 2.7232 3.5460 4.3295 5.0757 10% 2.4869 3.1699 3.7908 4.3553 Interest rate Periods 3 4 5 6 PV of $1 3 years 1-July-2022 $12,000 $1,000 $2,000 5% 0.8638 0.8227 0.7835 0.7462 5 years $3,000 $6,000 10% per annum 10% 0.7513 0.6830 0.6209 0.5645

Answer rating: 100% (QA)

Calculation of lease asset and lease liability for Whitehorse Ltd The lease asset is the present val... View the full answer