. Entity A entered a 3-year lease on 1.1.20X4 for the lease of machine A from entity Z. The lessor purchased the machine in cash for the lessee for €15,656.60. The machine was to be used in the production process and will be returned to entity Z at the end of the contract. On the basis of the signed contract, The rent will be annual, amounting to 6000€ and will be paid at the end of each year. The interest rate was set at 12% and the guaranteed residual value amounts to €1750. The following are requested: a. To show in a table the annual payments of economic entity A, broken down, as appropriate, into annual rent, interest-costs, and leasing liabilities; b. Make accounting entries on the lessee's side (entity A); c. Make accounting entries on the lessor's side (entity Z)
3.
Entity A entered a 3-year lease on 1.1.20X4 for the lease of machine A from entity Z. The lessor purchased the machine in cash for the lessee for €15,656.60. The machine was to be used in the production process and will be returned to entity Z at the end of the contract. On the basis of the signed contract, The rent will be annual, amounting to 6000€ and will be paid at the end of each year. The interest rate was set at 12% and the guaranteed residual value amounts to €1750.
The following are requested: a. To show in a table the annual payments of economic entity A, broken down, as appropriate, into annual rent, interest-costs, and leasing liabilities; b. Make accounting entries on the lessee's side (entity A); c. Make accounting entries on the lessor's side (entity Z)
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