Record straight-line amortization expense ($777/5 = $155.4) and adjust the ROU asset accordingly Record interest expense ($777
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Question:
- Record straight-line amortization expense ($777/5 = $155.4) and adjust the ROU asset accordingly
- Record interest expense ($777 0.7% = $5.4) and reduction in principal ($150 - $777 0.7% = $144.6) for lease liability
(in thousands of dollars)
DATE | ACCOUNTS | DEBIT | CREDIT |
12/31/21 | Amortization Expense | $155.4 | |
ROU Asset | $155.4 | ||
12/31/21 | Interest Expense | $5.4 | |
Finance Lease Liability | $144.6 | ||
Cash | $150.0 |
At the end of year 2:
- Record straight-line amortization expense ($777/5 = $155.4) and adjust the ROU asset accordingly
- Record interest expense (($777 ? $144.6) 0.7% = $4.4) and reduction in principal ($155 ? ($777 ? $144.6) 0.7% = $150.6) for lease liability
(in thousands of dolllars)
DATE | ACCOUNTS | DEBIT | CREDIT |
12/31/22 | Amortization Expense | $155.4 | |
ROU Asset | $155.4 | ||
12/31/22 | Interest Expense | $4.4 | |
Finance Lease Liability | $150.6 | ||
Cash |
1) Record straight-line amortization expense and adjust the ROU asset accordingly. 2) Record interest expense and reduction in principal for lease liability.Rounding to the nearest integer (in thousands of dollars.)
(in thousands of dollars) I need calculations (formulas to be insert excel chart)
Related Book For
Integrated Accounting
ISBN: 978-1285462721
8th edition
Authors: Dale A. Klooster, Warren Allen, Glenn Owen
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