A finance lease agreement calls for quarterly lease payments of $5,753 over a 12-year lease term, with the first payment on July 1, the beginning of the lease. The annual interest rate is 8%. Both the present value of the lease payments and the cost of the asset to the lessor are $180,000. Required: a. Prepare a partial amortization table up to the October 1 payment. b. What would be the amount of interest expense (revenue) the lessee (lessor) would record in conjunction with the second quarterly payment on October 17
A finance lease agreement calls for quarterly lease payments of $5,753 over a 12-year lease term, with the first payment on July 1, the beginning of the lease. The annual interest rate is 8%. Both the present value of the lease payments and the cost of the asset to the lessor are $180,000. Required: a. Prepare a partial amortization table up to the October 1 payment. b. What would be the amount of interest expense (revenue) the lessee (lessor) would record in conjunction with the second quarterly payment on October 17
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Brief Exercise 15-3 (Algo) Lessee and lessor; calculate interest; finance/sales-type lease [LO15-2]
A finance lease agreement calls for quarterly lease payments of $5,753 over a 12-year lease term, with the first payment on July 1, the
beginning of the lease. The annual interest rate is 8%. Both the present value of the lease payments and the cost of the asset to the
lessor are $180,000.
Required:
a. Prepare a partial amortization table up to the October 1 payment.
b. What would be the amount of interest expense (revenue) the lessee (lessor) would record in conjunction with the second
quarterly payment on October 1?
Answer is not complete.
Complete this question by entering your answers in the tabs below.
Required A
What would be the amount of interest expense (revenue) the lessee (lessor) would record in conjunction with the second
quarterly payment on October 1?
Note: Enter all amounts as positive values. Round your answers to the nearest whole dollar.
Required B
Interest expense (Lessee)
Interest revenue (Lessor)
3,485
< Required A](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8ae7877c-cb86-4790-92de-07903d14395e%2Fdcba5ec0-d702-454c-90ee-d6d2cc8606f7%2Fwzsopzs_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Brief Exercise 15-3 (Algo) Lessee and lessor; calculate interest; finance/sales-type lease [LO15-2]
A finance lease agreement calls for quarterly lease payments of $5,753 over a 12-year lease term, with the first payment on July 1, the
beginning of the lease. The annual interest rate is 8%. Both the present value of the lease payments and the cost of the asset to the
lessor are $180,000.
Required:
a. Prepare a partial amortization table up to the October 1 payment.
b. What would be the amount of interest expense (revenue) the lessee (lessor) would record in conjunction with the second
quarterly payment on October 1?
Answer is not complete.
Complete this question by entering your answers in the tabs below.
Required A
What would be the amount of interest expense (revenue) the lessee (lessor) would record in conjunction with the second
quarterly payment on October 1?
Note: Enter all amounts as positive values. Round your answers to the nearest whole dollar.
Required B
Interest expense (Lessee)
Interest revenue (Lessor)
3,485
< Required A
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