f. Notes Payable

This is a short-term note. The company borrowed money from JRT Investments on October 31, Y6 for 3 months. The principal, along with interest is to be repaid on January 31, Y7. The interest rate is 3.60%. Note there is no tab in the excel file for this item. Use the journal entry tab to make any necessary calculations.

make any required calculations and prepare journal entries.

g. Leased Asset

On January 1, Y6, Aylmer decided to lease a machine. The accountant at the time did not know how to record this asset (the accountant did not take Intermediate Accounting 2 at Fanshawe!). NO TRANSACTIONS relating to leases were recorded. The following information pertains to the leased machine:

• The lease term is 6 years and the economic life of the asset is 7 years.
• The annual payment is $22,470. This payment includes annual executory costs (insurance) of $890. The remainder is the lease payment.
• Interest rate associated with this lease is 7.0%.

In the Excel spreadsheet, see the tab labelled Leased Liability to make the appropriate calculations and requirements for reconciling the lease information. Then prepare all the appropriate entries (including setup up the asset, the liability and any payments and interest).

Present Value Calculation & Amortization Schedule
PV
Rate
Nper
Pymt
FV
Type