1, Georgia-Atlantic, Inc. leased war nlce semiannual lease paymer
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- 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)Leases-cemara Lessor-cermai bhd Question 6 Cemara Bhd sells and leases out a plant. On 1 January 2019, Cemara Bhd entered into a three year non-cancellable lease with Cermai Bhd on the following terms: Lease rental is RM28,000, payable annually in advance. W. The initial direct costs of RM4,200 incurred in commission and legal fees are to borne by Cemara Bhd and charged to the Statement of Profit or Loss on a systematic basis. The interest rate implicit in the lease with Cermai Bhd is 18%. There is a guaranteed residual value of RM14,000 by Cermai Bhd. The fair value of the machine is RM80,358. Iv. V. Required: a) Prepare the related journal entries for the year 2019 for Cemara Bhd. b) Prepare the extract of Cemara Bhd's Statement of Profit and Loss and Other Comprehensive Income for the year ended 31 December 2019, 2020 and 2021. c) Prepare the extract of Cemara Bhd's Statement of Financial Position as at 31 December 2019, 2020 and 2021. (include the notes to the financial statement…Exercise 15-33 (Algo) Nonlease payments; lessor and lessee [LO15-2, 15-7] On January 1, 2024, NRC Credit Corporation leased equipment to Brand Services under a finance/sales-type lease designed to earn NRC a 11% rate of return for providing long-term financing. The lease agreement specified the following: Ten annual payments of $61,000 beginning January 1, 2024, the beginning of the lease and each December 31 thereafter through 2032. The estimated useful life of the leased equipment is 10 years with no residual value. Its cost to NRC was $346,464. The lease qualifies as a finance lease/sales-type lease. A 10-year service agreement with Quality Maintenance Company was negotiated to provide maintenance of the equipment as required. Payments of $8,000 per year are specified, beginning January 1, 2024. NRC was to pay this cost as incurred, but lease payments reflect this expenditure. A partial amortization schedule, appropriate for both the lessee and lessor, follows: Note: Use…
- REQUIRED 2) WESTERN SOYA IS FINANCE LEASE, RHONE METRO- SALES-TYPE LEASE NEED ASSITANCE WITH REQUIRED 1, 3 LESSEE , 3 LESSORDescribe the primary differences between IFRS and U.S. GAAP in the way leases are classified as either operating or finance (capital) leases.E21-11. Please answer E21-11, and show all your workings clearly.
- HansabenGan(Leases) 6 Exercise 15-5 (Static) Sales-type lease; lessor; balance sheet and income statement effects [LO15-3] On June 30, 2021, Georgia-Atlantic, Inc. leased warehouse equipment from Bullders, Inc. The lease agreement calls for Georgia- Atlantic to make semiannual lease payments of $562,907 over a three-year lease term (also the asset's useful life), payable each June 30 and December 31, with the first payment at June 30, 2021. Georgia-Atlantic's incremental borrowing rate is 10%, the same rate Builders used to calculate lease payment amounts. Builders manufactured the equipment at a cost of $2.5 million. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Determine the price at which Builders is "selling" the equipment (present value of the lease payments) at June 30, 2021. 2. What amount related to the lease would Builders report in its balance sheet at December 31, 2021 (ignore taxes)? 3. What…
- ces Exercise 15-40 (Algo) Reporting leases in a statement of cash flows; disclosure note; Macroware [LO 15- 8] Macroware Corporation reported the following disclosure note in its 2020 financial statements: Note 14-LEASES (in part) Supplemental cash flow information related to leases was as follows: (In millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases Operating cash flows from finance leases Financing cash flows from finance leases S Required: 1. Prepare a journal entry that summarizes the cash payments for operating leases during the year. 2. Prepare a journal entry that summarizes the cash payments for finance leases during the year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 View transaction list Prepare a journal entry that summarizes the cash payments for operating leases during the year. Note: If no entry is required for a transaction/event, select "No journal…When a sale-leaseback transaction occurs, if the leaseback is considered to be an operating lease, and the lease payments and sales price are at fair value, any gain on the sale a. Is amortized over the lease term by a company using IFRS. b. Is recognized immediately by a company using IFRS. c. Is amortized over the lease term by a company using either U.S. GAAP or IFRS. d. Is not recorded by a company using IFRS.7