2. Prepare the journal entries relating to the leased asset and the lease liability for 20X4 and 20x5 for Yvan. (If no entry is required fora transaction/event, select "No journal entry required" in the first account field.)View transaction listJournal entry worksheet123Note: Enter debits before credits.Date2 January 20X4Record entry45Record the initial recognition of Right-of-use asset the at the commencementof lease.6General JournalClear entry7DebitCreditView general journal On 2 January 20X4, Yvan Ltd, a public company, entered into a five-year equipment lease with Jeffery Leasing Inc. The lease calls forannual lease payments of $165,000. payable at the beginning of each lease year Yvan's IBR is 8% Yvan does not know the lessor'sInterest rate. The fair value of the equipment is $690.000. Yvan depreciates equipment on a straight-line basis, taking a full year'sdepreciation in the year of acquisition(PV of $1. PVA of $1. and PVAD of $1) (Use appropriate factor(s) from the tables provided.)Required:1. Prepare the lease liability amortization schedule for YvanYear200420x520x620x72008OpeningbalanceInterest@8%Cashpayment$ 165,000165,000165,000165,000165.000Incri(Deer) inbalanceEndingbalance

Lease liability refers to an amount that is obliged to pay to lessees as a rent payment which is…

2. Prepare the journal entries relating to the leased asset and the lease liability for 20X4 and 20X5 for Yvan. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 Date Note: Enter debits before credits, 4 5 6 Record the initial recognition of Right-of-use asset the at the commencement of lease. 7 General Journal Debit Credit

2. Prepare the journal entries relating to the leased asset and the lease liability for 20X4 and 20X5 for Yvan. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 Date Note: Enter debits before credits, 4 5 6 Record the initial recognition of Right-of-use asset the at the commencement of lease. 7 General Journal Debit Credit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Example 1 and 2 answers please
Among the four types of leases: Lessor’s sales-type lease, Lessor’s operating lease Lessee’s finance lease, Lessee’s operating lease Which type(s) of lease will record Lease Liability upon the inception of the lease? Enter the number that represents the correct answer. Lessee’s finance lease, Lessee’s operating lease, and Lessor’s sales-type lease Lessee’s finance lease and Lessee’s operating lease Lessee’s finance lease only Lessee’s operating lease only
38. In an operating lease, the lessee records interest expense. lease expense. amortization expense and lease expense. amortization expense.
Discuss the financial statement disclosure requirements for all leases entered into by the lessor. Essay Toolbar navigation BIUS == ווין IVI MM !!!
Complete this question by entering your answers in the tabs below. Req 1 to 3 and 5 Req 4 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 1. How should this lease be classified by Yard Art Landscaping (the lessee)? 2. Calculate the amount Yard Art Landscaping would record as a right-of-use asset and a lease liability. 3. How should this lease be classified by Branch Motors (the lessor)? 5. Calculate the amount Branch Motors would record as sales revenue. Note: Round your intermediate and final answers to nearest whole dollar. 1. This lease should be classified by Yard Art as a 2. The amount that Yard Art would record as a right-of-use asset and a lease liability would be 3. This lease should be classified by Branch Motors as a 5. The amount that Branch Motors would record as sales revenue would be Show less▲
4 01:20:58 Discuss the financial statement disclosure requirements for all leases entered into by the lessee. Essay Toolbar navigation BIUS === lil IMI !!! A > 57 Ky
Under IFRS 16, lessors are required to account for lease receipts from operation leases as a. Income, on a straight-line basis over the lease term b. Revenue, on a reducing balance basis over the lease term c. Revenue, at the end of lease term d. Income, on inception date of the lease
Part 1: New Lease Accounting – using IFRS 16 Leases Effect Analysis. Which payments are to be included in the measurement of lease assets and lease liabilities? Also, discuss the pros and cons of excluding the following payments from the measurement. - Variable lease payments linked to future use or sales - Optional payments relating to lease-extension option when a lessee is not reasonably certain to exercise the option.