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ANSWER REQUIRED. SHOW COMPLETE SOLUTIONS AND ANSWERS

ANSWER REQUIRED. SHOW COMPLETE SOLUTIONS AND ANSWERS

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ANSWER REQUIRED. SHOW COMPLETE SOLUTIONS AND ANSWERS

On January 1, 2020, Yuri Company leased a machine with the following information: Annual rental payable at the end of each year Lease term 100,000 5 years 6% Implicit rate in the lease Present value of an ordinary annuity of 1 at 6% for 5 periods 4.2124 On January 1, 2022, Yuri Company and the lessor agreed to amend the original terms of the lease by reducing the annual lease payment by P20,000 and increasing the implicit rate to 8%. The present value of an ordinary annuity of 1 at 8% for 3 periods is 2.5771. Required: 4. Prepare the table of amortization for 2022, 2023 and 2024. 5. Prepare the journal entries for 2022.
Transcribed Image Text:On January 1, 2020, Yuri Company leased a machine with the following information: Annual rental payable at the end of each year Lease term 100,000 5 years 6% Implicit rate in the lease Present value of an ordinary annuity of 1 at 6% for 5 periods 4.2124 On January 1, 2022, Yuri Company and the lessor agreed to amend the original terms of the lease by reducing the annual lease payment by P20,000 and increasing the implicit rate to 8%. The present value of an ordinary annuity of 1 at 8% for 3 periods is 2.5771. Required: 4. Prepare the table of amortization for 2022, 2023 and 2024. 5. Prepare the journal entries for 2022.
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