Suppose you are employed as the Director of Finance within the Hanson Group, and the following...

  

 
 
 
 

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Suppose you are employed as the Director of Finance within the Hanson Group, and the following lease agreement was signed by your employer. You must determine what type of lease was signed (i.e., operating, finance, etc.). Answer the following questions in the provided template. a. Explain your answer by showing the steps taken to determine the classification. b. Determine how to record the lease by answering the questions from Group I or II criteria in this lesson. When reviewing the economic life test, the useful life for the vehicle is 7 years. c. If an amortization schedule is needed, create one on the tab labeled in the Excel spreadsheet with 3% interest. If you believe that you do not need to create an amortization schedule, wrote "none required" on that tab. d. Create your journal entry for how to record the lease in the financial statements for the calendar year 2021. You are in the process of closing the period for July 2021. ! Hanson Group Lease Agreement Lessee Name Lease Term Vehicle Description Delivery date Monthly Rental and Other Payments Calculation of Monthly Rental: Additional Services Initial Charges Service Charge Reduced Book Value Hanson Group Commencing on the delivery date of the vehicle and ending 48 months after the first full monthly rental payment date with an option to continue month-month for an unlimited period of time. 2020 Hyundai Elantra Series SEL 4dr Sedan Unit 2729V5 1/16/21 Due: $ $ $ $ 555 SSSS $ $ $ $ 55 $ Customer #58788 20,603.52 Capitalized price of vehicle 339.96 Depreciation Reserve @1.65% 66.08 Monthly Lease Charge 406.04 Total Monthly Rental Excluding Additional Services 96.09 Full Maintenance Contract Miles 75,000 Over Mileage .0450 Per Mile 40.00 Physical Damage Management 542.13 Total Monthly Rental Including Additional Services 279.81 Pro-rated Rental 542.13 First Month's Rental 479.44 License and Certain Other Charges 1,301.38 Total Initial Charges 350.00 Service Charge Due at Lease Termination 4,285.44 Reduced Book Value at Lease Termination Scenario Suppose you are employed as the Director of Finance within the Hanson Group, and the following lease agreement was signed by your employer. You must determine what type of lease was signed (i.e., operating, finance, etc.). 2. Answer the following questions in the provided template. Case Study Questions a. Explain your answer by showing the steps taken to determine the classification. b. Determine how to record the lease by answering the questions from Group I or II criteria in this lesson. When reviewing the economic life test, the useful life for the vehicle is 7 years. c. If an amortization schedule is needed, create one on the tab labeled in the Excel spreadsheet with 3% interest. If you believe that you do not need to create an amortization schedule, wrote "none required" on that tab. d. Create your journal entry for how to record the lease in the financial statements for the calendar year 2021. You are in the process of closing the period for July 2021. Hanson Group Lease Agreement Lessee Name Lease Term Vehicle Description Delivery date Monthly Rental and Other Payments Calculation of Monthly Rental: Additional Services Initial Charges Service Charge Reduced Book Value Hanson Group Commencing on the delivery date of the vehicle and ending 48 months after the first full monthly rental payment date with an option to continue month-month for an unlimited period of time. 2020 Hyundai Elantra Series SEL 4dr Sedan Unit 2729V5 1/16/21 Due: $ $ $ $ ssss $ $ $ $ $ SsSsS $ $ $ SS $ Customer # 58788 20.603.52 Capitalized price of vehicle 339.96 Depreciation Reserve @1.65% 66.08 Monthly Lease Charge 406.04 Total Monthly Rental Excluding Additional Services 96.09 Full Maintenance Contract Miles 75,000 Over Mileage .0450 Per Mile 40.00 Physical Damage Management 542.13 Total Monthly Rental Including Additional Services 279.81 Pro-rated Rental 542.13 First Month's Rental 479.44 License and Certain Other Charges 1.301.38 Total Initial Charges 350.00 Service Charge Due at Lease Termination 4,285.44 Reduced Book Value at Lease Termination List and explain the steps you took to determine the type of lease for the Hanson Group. Determine how to record the lease by answering the questions from either Group I or Group Il criteria in the lesson, and identify which group you used.. Cite any sources in APA format List and explain the steps below: Group: Insert your answers from either Group I or Group II Criteria below: References Amortilation Schedule If needed, insert the amortization schedule at 3% interest. If you believe that the schedule is not required, write none required on the tab and explain your answer. Journal Entry Create your journal entry for how to record the lease in the financial statements for the calendar year 2021. You are in the process of closing the period for July 2021. Date Account Debit Credit Suppose you are employed as the Director of Finance within the Hanson Group, and the following lease agreement was signed by your employer. You must determine what type of lease was signed (i.e., operating, finance, etc.). Answer the following questions in the provided template. a. Explain your answer by showing the steps taken to determine the classification. b. Determine how to record the lease by answering the questions from Group I or II criteria in this lesson. When reviewing the economic life test, the useful life for the vehicle is 7 years. c. If an amortization schedule is needed, create one on the tab labeled in the Excel spreadsheet with 3% interest. If you believe that you do not need to create an amortization schedule, wrote "none required" on that tab. d. Create your journal entry for how to record the lease in the financial statements for the calendar year 2021. You are in the process of closing the period for July 2021. ! Hanson Group Lease Agreement Lessee Name Lease Term Vehicle Description Delivery date Monthly Rental and Other Payments Calculation of Monthly Rental: Additional Services Initial Charges Service Charge Reduced Book Value Hanson Group Commencing on the delivery date of the vehicle and ending 48 months after the first full monthly rental payment date with an option to continue month-month for an unlimited period of time. 2020 Hyundai Elantra Series SEL 4dr Sedan Unit 2729V5 1/16/21 Due: $ $ $ $ 555 SSSS $ $ $ $ 55 $ Customer #58788 20,603.52 Capitalized price of vehicle 339.96 Depreciation Reserve @1.65% 66.08 Monthly Lease Charge 406.04 Total Monthly Rental Excluding Additional Services 96.09 Full Maintenance Contract Miles 75,000 Over Mileage .0450 Per Mile 40.00 Physical Damage Management 542.13 Total Monthly Rental Including Additional Services 279.81 Pro-rated Rental 542.13 First Month's Rental 479.44 License and Certain Other Charges 1,301.38 Total Initial Charges 350.00 Service Charge Due at Lease Termination 4,285.44 Reduced Book Value at Lease Termination Scenario Suppose you are employed as the Director of Finance within the Hanson Group, and the following lease agreement was signed by your employer. You must determine what type of lease was signed (i.e., operating, finance, etc.). 2. Answer the following questions in the provided template. Case Study Questions a. Explain your answer by showing the steps taken to determine the classification. b. Determine how to record the lease by answering the questions from Group I or II criteria in this lesson. When reviewing the economic life test, the useful life for the vehicle is 7 years. c. If an amortization schedule is needed, create one on the tab labeled in the Excel spreadsheet with 3% interest. If you believe that you do not need to create an amortization schedule, wrote "none required" on that tab. d. Create your journal entry for how to record the lease in the financial statements for the calendar year 2021. You are in the process of closing the period for July 2021. Hanson Group Lease Agreement Lessee Name Lease Term Vehicle Description Delivery date Monthly Rental and Other Payments Calculation of Monthly Rental: Additional Services Initial Charges Service Charge Reduced Book Value Hanson Group Commencing on the delivery date of the vehicle and ending 48 months after the first full monthly rental payment date with an option to continue month-month for an unlimited period of time. 2020 Hyundai Elantra Series SEL 4dr Sedan Unit 2729V5 1/16/21 Due: $ $ $ $ ssss $ $ $ $ $ SsSsS $ $ $ SS $ Customer # 58788 20.603.52 Capitalized price of vehicle 339.96 Depreciation Reserve @1.65% 66.08 Monthly Lease Charge 406.04 Total Monthly Rental Excluding Additional Services 96.09 Full Maintenance Contract Miles 75,000 Over Mileage .0450 Per Mile 40.00 Physical Damage Management 542.13 Total Monthly Rental Including Additional Services 279.81 Pro-rated Rental 542.13 First Month's Rental 479.44 License and Certain Other Charges 1.301.38 Total Initial Charges 350.00 Service Charge Due at Lease Termination 4,285.44 Reduced Book Value at Lease Termination List and explain the steps you took to determine the type of lease for the Hanson Group. Determine how to record the lease by answering the questions from either Group I or Group Il criteria in the lesson, and identify which group you used.. Cite any sources in APA format List and explain the steps below: Group: Insert your answers from either Group I or Group II Criteria below: References Amortilation Schedule If needed, insert the amortization schedule at 3% interest. If you believe that the schedule is not required, write none required on the tab and explain your answer. Journal Entry Create your journal entry for how to record the lease in the financial statements for the calendar year 2021. You are in the process of closing the period for July 2021. Date Account Debit Credit

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a To determine the type of lease we need to consider the criteria outlined in ASC 842 The lease term is 48 months and there is an option to continue m... View the full answer