Company A (lessee) has reached a lease agreement with company B (lessor) to lease a new...
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Company A (lessee) has reached a lease agreement with company B (lessor) to lease a new carpet weaving machine for five years beginning January 1, Year 1. The present value of the weaving machine is $47,945.18. The following amortization schedule was developed using the lease agreement: COMPANY A LEASE AMORTIZATION SCHEDULE ANNUITY-DUE BASIS Annual Lease Date January 1, Year 1 January 1, Year 1 January 1, Year 2 Payment $10,355.57 10,355.57 January 1, Year 3 10,355.57 January 1, Year 4 10,355.57 January 1, Year 5 10,355,57 $54,277 83 January 1. Year 6 2,500.00 Reduction of Interest Lease Liability $0.00 $10.355.57 1,585.78 8,769.79 1,234.99 9.120 58 870.16 9,485,40 490.75 9,864 82 2.403.85 $50,000.00 96.15 $4,277.83 Lease Liability $50,000.00 39,644 43 30,874.65 21,754.07 12,268 66 2,403 85 0.00 What is the journal entry that Company B needs to record on December 31, Year 1 to recognize interest revenue? Company A (lease) has reached an operating lease agreement with company B (lessor) to lease a new boom lift beginning January 1, Year 1. The lease schedule are detailed below: COMPANY A LEASE AMORTIZATION SCHEDULE ANNUITY-DUE BASIS Reduction of Lease Interest Lease Liability SO.00 $10,355.57 8,769.79 Liability $50,000.00 39,644 43 9.120.58 9,485 40 9,864.82 2.403 85 30,874.65 21,754.07 12,268.66 2,403 85 0.00 Date January 1, Year 1 January 1. Year 1 January 1, Year 2 Annual Lease Payment $10,355.57 10,355.57 January 1, Year 3 10,355.57 January 1, Year 4 10,355.57 January 1. Year 5 10,355.57 1.585.78 1,234.99 870.16 490.75 96.15 $54,277 83 $4.277.83 January 1, Year 6 2.500.00 $50,000.00 What is the journal entry to record the lease expense on December 31, Year 2? Company A (lessee) has reached a lease agreement with company B (lessor) to lease a new carpet weaving machine for five years beginning January 1, Year 1. The present value of the weaving machine is $47,945.18. The following amortization schedule was developed using the lease agreement: COMPANY A LEASE AMORTIZATION SCHEDULE ANNUITY-DUE BASIS Annual Lease Date January 1, Year 1 January 1, Year 1 January 1, Year 2 Payment $10,355.57 10,355.57 January 1, Year 3 10,355.57 January 1, Year 4 10,355.57 January 1, Year 5 10,355,57 $54,277 83 January 1. Year 6 2,500.00 Reduction of Interest Lease Liability $0.00 $10.355.57 1,585.78 8,769.79 1,234.99 9.120 58 870.16 9,485,40 490.75 9,864 82 2.403.85 $50,000.00 96.15 $4,277.83 Lease Liability $50,000.00 39,644 43 30,874.65 21,754.07 12,268 66 2,403 85 0.00 What is the journal entry that Company B needs to record on December 31, Year 1 to recognize interest revenue? Company A (lease) has reached an operating lease agreement with company B (lessor) to lease a new boom lift beginning January 1, Year 1. The lease schedule are detailed below: COMPANY A LEASE AMORTIZATION SCHEDULE ANNUITY-DUE BASIS Reduction of Lease Interest Lease Liability SO.00 $10,355.57 8,769.79 Liability $50,000.00 39,644 43 9.120.58 9,485 40 9,864.82 2.403 85 30,874.65 21,754.07 12,268.66 2,403 85 0.00 Date January 1, Year 1 January 1. Year 1 January 1, Year 2 Annual Lease Payment $10,355.57 10,355.57 January 1, Year 3 10,355.57 January 1, Year 4 10,355.57 January 1. Year 5 10,355.57 1.585.78 1,234.99 870.16 490.75 96.15 $54,277 83 $4.277.83 January 1, Year 6 2.500.00 $50,000.00 What is the journal entry to record the lease expense on December 31, Year 2?
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Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
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