On January 1, 2020, Lessee Company entered into a 5-yr iease of a floor of a...

 

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On January 1, 2020, Lessee Company entered into a 5-yr iease of a floor of a building with the ff terms: Annual rental for the first 2 years payable at the end of Annual rental for the next 3 years payable at the end of Initial direct cost paid by lessee Leasehold improvement PV of restoration cost required by contract Useful life of building implicit interest rate Discount rate for the restoration cost PV of an ordinary annuity of 1 at 8% for 2 periods PV of an ordinary annuity of 1 at 8% for 3 periods PV of 1 at 8% for 2 periods Compute for: 1) Lease liability, January 1, 2020 2) Cost of ROUA, January 1, 2020 3) Depreciation, 2020 4) Prepare a complete table of amortization for the lease liability 5) Prepare journal entries for 2020 6) Prepare the journal entry for the lease payment on December 31, 2022 On January 1, 2020, Lessee Company entered into a 5-yr iease of a floor of a building with the ff terms: Annual rental for the first 2 years payable at the end of Annual rental for the next 3 years payable at the end of Initial direct cost paid by lessee Leasehold improvement PV of restoration cost required by contract Useful life of building implicit interest rate Discount rate for the restoration cost PV of an ordinary annuity of 1 at 8% for 2 periods PV of an ordinary annuity of 1 at 8% for 3 periods PV of 1 at 8% for 2 periods Compute for: 1) Lease liability, January 1, 2020 2) Cost of ROUA, January 1, 2020 3) Depreciation, 2020 4) Prepare a complete table of amortization for the lease liability 5) Prepare journal entries for 2020 6) Prepare the journal entry for the lease payment on December 31, 2022

Answer rating: 100% (QA)

PROBLEM 1 1Lease liability January 1 2020 5 Prepare journal entries for 2020 Annual rental for first ... View the full answer