Question: Please watch my instruction that I put on the table for part B , complete the table, every spot that say answer an amount should
Please watch my instruction that I put on the table for part B , complete the table, every spot that say answer an amount should enter here
On January 1 of Year 1, Ashe Company entered into a ve-year equipment lease (with no renewal options) requiring payments of $10,000 , with the rst payment due immediately. The lessors implicit interest rate, known to Ashe, is 6%. Ownership of the equipment remains with the lessor at expiration of the lease. There is no option to purchase the property at the end of the lease term and the equipment is expected to have no residual value. The equipment has an estimated economic life of ve years.
a. How would Ashe Company classify the lease? AnswerFinance leaseOperating lease b. Prepare a schedule of the lease liability for the 5-year lease term. Note: Round each amount in the schedule to the nearest whole dollar. Use the rounded amount for later calculations in the schedule. Please watch my instruction that I out on the table for part B, Complete the table, every spot that say answer an amount should enter here
Complete the table please and thank you
DateLeaseInterestLease LiabilityLeasePaymenton LiabilityChangeLiabilityJan. 1, Year 1AnswerJan. 1, Year 110000
Answer
Answer
Answer
Jan. 1, Year 210000
Answer
Answer
Answer
Jan. 1, Year 310000
Answer
Answer
0Jan. 1, Year 410000
Answer
10000-10000Jan. 1, Year 510000
Answer
10000-20000Total$50000$$20000
c. Prepare the entries for Ashe on (1) January 1 to record commencement of the lease and the rst lease payment, and (2) December 31 to record the two year-end adjusting entries. Note: Round your answers to the nearest whole dollar. For Part C, it is only 2 answers for example; right of use asset debit and credit cash or whatever the name is. No extra steps like Right of use asset debit, liability debit and credit cash no, it's only 2 lines not 3 the third line is to put for example to record lease liability and right-use of asset.
Thank you in advance for the great work
DateAccount NameDr.Cr.Jan. 1
CashInitial Direct CostInventoryPrepaid Maintenance ExpenseEquipmentAccumulated DepreciationLease ReceivableRight-of-Use AssetAccrued Legal ExpenseDeferred Lease RevenueDeposit LiabilityLease Incentive PayableLease LiabilitySales RevenueInterest RevenueLease RevenueCost of Goods SoldAmortization ExpenseDepreciation ExpenseInterest ExpenseLease ExpenseLoss on LeaseSelling ExpenseAnswer
CashInitial Direct CostInventoryPrepaid Maintenance ExpenseEquipmentAccumulated DepreciationLease ReceivableRight-of-Use AssetAccrued Legal ExpenseDeferred Lease RevenueDeposit LiabilityLease Incentive PayableLease LiabilitySales RevenueInterest RevenueLease RevenueCost of Goods SoldAmortization ExpenseDepreciation ExpenseInterest ExpenseLease ExpenseLoss on LeaseSelling ExpenseAnswer
To record lease liability and right-of-use asset.Jan. 1CashInitial Direct CostInventoryPrepaid Maintenance ExpenseEquipmentAccumulated DepreciationLease ReceivableRight-of-Use AssetAccrued Legal ExpenseDeferred Lease RevenueDeposit LiabilityLease Incentive PayableLease LiabilitySales RevenueInterest RevenueLease RevenueCost of Goods SoldAmortization ExpenseDepreciation ExpenseInterest ExpenseLease ExpenseLoss on LeaseSelling ExpenseAnswer
CashInitial Direct CostInventoryPrepaid Maintenance ExpenseEquipmentAccumulated DepreciationLease ReceivableRight-of-Use AssetAccrued Legal ExpenseDeferred Lease RevenueDeposit LiabilityLease Incentive PayableLease LiabilitySales RevenueInterest RevenueLease RevenueCost of Goods SoldAmortization ExpenseDepreciation ExpenseInterest ExpenseLease ExpenseLoss on LeaseSelling ExpenseAnswer
To record receipt of lease payment.Dec. 31CashInitial Direct CostInventoryPrepaid Maintenance ExpenseEquipmentAccumulated DepreciationLease ReceivableRight-of-Use AssetAccrued Legal ExpenseDeferred Lease RevenueDeposit LiabilityLease Incentive PayableLease LiabilitySales RevenueInterest RevenueLease RevenueCost of Goods SoldAmortization ExpenseDepreciation ExpenseInterest ExpenseLease ExpenseLoss on LeaseSelling ExpenseAnswer
CashInitial Direct CostInventoryPrepaid Maintenance ExpenseEquipmentAccumulated DepreciationLease ReceivableRight-of-Use AssetAccrued Legal ExpenseDeferred Lease RevenueDeposit LiabilityLease Incentive PayableLease LiabilitySales RevenueInterest RevenueLease RevenueCost of Goods SoldAmortization ExpenseDepreciation ExpenseInterest ExpenseLease ExpenseLoss on LeaseSelling ExpenseAnswer
To record interest.Dec. 31CashInitial Direct CostInventoryPrepaid Maintenance ExpenseEquipmentAccumulated DepreciationLease ReceivableRight-of-Use AssetAccrued Legal ExpenseDeferred Lease RevenueDeposit LiabilityLease Incentive PayableLease LiabilitySales RevenueInterest RevenueLease RevenueCost of Goods SoldAmortization ExpenseDepreciation ExpenseInterest ExpenseLease ExpenseLoss on LeaseSelling ExpenseAnswer
CashInitial Direct CostInventoryPrepaid Maintenance ExpenseEquipmentAccumulated DepreciationLease ReceivableRight-of-Use AssetAccrued Legal ExpenseDeferred Lease RevenueDeposit LiabilityLease Incentive PayableLease LiabilitySales RevenueInterest RevenueLease RevenueCost of Goods SoldAmortization ExpenseDepreciation ExpenseInterest ExpenseLease ExpenseLoss on LeaseSelling ExpenseAnswer
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