AC3220 Corp., who reports under ASPE, leases computer equipment on January 1, 2023, and records this as a capital lease. Three annual lease payments of $10,000 are required the beginning of each year, starting January 1, 2023. The interest rate for the lease 10%. Title passes to AC3220 at the end of the lease. AC3220 uses the effective interest method of amortization for the lease. The company uses straight-line depreciation over the equipment's expected useful life of three years, with no residual value. Instructions (Round values to the nearest dollar.) a) Calculate the present value of the lease payments b) Prepare a lease amortization table for 2023, 2024, and 2025. c) Prepare the general journal entries relating to this lease for 2023. Paragraph ✓ Date BI UA + v ... Beginning Balance Payment Interest Expense Lease Amortization Ending Balance 11.
AC3220 Corp., who reports under ASPE, leases computer equipment on January 1, 2023, and records this as a capital lease. Three annual lease payments of $10,000 are required the beginning of each year, starting January 1, 2023. The interest rate for the lease 10%. Title passes to AC3220 at the end of the lease. AC3220 uses the effective interest method of amortization for the lease. The company uses straight-line depreciation over the equipment's expected useful life of three years, with no residual value. Instructions (Round values to the nearest dollar.) a) Calculate the present value of the lease payments b) Prepare a lease amortization table for 2023, 2024, and 2025. c) Prepare the general journal entries relating to this lease for 2023. Paragraph ✓ Date BI UA + v ... Beginning Balance Payment Interest Expense Lease Amortization Ending Balance 11.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter20: Accounting For Leases
Section: Chapter Questions
Problem 1P: Determining Type of Lease and Subsequent Accounting On January 1, 2019, Ballieu Company leases...
Related questions
Question
![AC3220 Corp., who reports under ASPE, leases computer equipment on January 1, 2023, and records this
as a capital lease. Three annual lease payments of $10,000 are required the beginning of each year,
starting January 1, 2023. The interest rate for the lease 10%. Title passes to AC3220 at the end of the
lease.
AC3220 uses the effective interest method of amortization for the lease. The company uses straight-line
depreciation over the equipment's expected useful life of three years, with no residual value.
Instructions (Round values to the nearest dollar.)
a) Calculate the present value of the lease payments
b) Prepare a lease amortization table for 2023, 2024, and 2025.
c) Prepare the general journal entries relating to this lease for 2023.
Paragraph ✓
Date
BI UA
+ v
...
Beginning
Balance
Payment
Interest
Expense
Lease
Amortization
Ending
Balance
11.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2d31b727-ca47-41d3-943c-2c937609eac6%2F3c90664f-08e0-4590-84ce-6d64c50dac94%2Fpfjj1mw_processed.png&w=3840&q=75)
Transcribed Image Text:AC3220 Corp., who reports under ASPE, leases computer equipment on January 1, 2023, and records this
as a capital lease. Three annual lease payments of $10,000 are required the beginning of each year,
starting January 1, 2023. The interest rate for the lease 10%. Title passes to AC3220 at the end of the
lease.
AC3220 uses the effective interest method of amortization for the lease. The company uses straight-line
depreciation over the equipment's expected useful life of three years, with no residual value.
Instructions (Round values to the nearest dollar.)
a) Calculate the present value of the lease payments
b) Prepare a lease amortization table for 2023, 2024, and 2025.
c) Prepare the general journal entries relating to this lease for 2023.
Paragraph ✓
Date
BI UA
+ v
...
Beginning
Balance
Payment
Interest
Expense
Lease
Amortization
Ending
Balance
11.
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