E21.10 (LO 2) (Lessee Entries with Bargain Purchase Option) The following facts pertain to a non-cancelable lease agreement between Mooney Leasing and Choi Group, a lessee (amounts in thousands). Commencement date May 1, 2022 Annual lease payment due at the beginning of each year, beginning ¥20,471.94 with May 1, 2022 Bargain purchase option price at end of lease term ¥4,000.00 Lease term 5 years Economic life of leased equipment 10 years Lessor's cost ¥65,000.00| Fair value of asset at May 1, 2022 ¥91,000.00| Lessor's implicit rate 8% Lessee's incremental borrowing rate 8% The collectibility of the lease payments by Mooney is probable. Instructions (Round all numbers to the nearest yen.) a. Prepare a lease amortization schedule for Choi for the 5-year lease term. b. Prepare the journal entries on the lessee's books to reflect the signing of the lease agreement and to record the payments and expenses related to this lease for the years 2022 and 2023. Choi's annual accounting period ends on December 31. Reversing entries are used by Choi.

E21.10 (LO 2) (Lessee Entries with Bargain Purchase Option) The following facts pertain to a non-cancelable lease agreement between Mooney Leasing and Choi Group, a lessee (amounts in thousands). Commencement date May 1, 2022 Annual lease payment due at the beginning of each year, beginning ¥20,471.94 with May 1, 2022 Bargain purchase option price at end of lease term ¥4,000.00 Lease term 5 years Economic life of leased equipment 10 years Lessor's cost ¥65,000.00| Fair value of asset at May 1, 2022 ¥91,000.00| Lessor's implicit rate 8% Lessee's incremental borrowing rate 8% The collectibility of the lease payments by Mooney is probable. Instructions (Round all numbers to the nearest yen.) a. Prepare a lease amortization schedule for Choi for the 5-year lease term. b. Prepare the journal entries on the lessee's books to reflect the signing of the lease agreement and to record the payments and expenses related to this lease for the years 2022 and 2023. Choi's annual accounting period ends on December 31. Reversing entries are used by Choi.

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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Se.115.
please explain answer in detail describe each and every point and step with full explantion , computation , formulation thanks
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P21-14. Please answer c,d,e, and SHOW ALL WORKINGS CLEARLY. Also, please indicate whether they are a lessee or lessor.
2...new.continue...c The following facts pertain to a non-cancelable lease agreement between Faldo Leasing Company and Crane Company, a lessee. Commencement date January 1, Annual lease payment due at the beginning of each year, beginning with January 1, $104,218 Residual value of equipment at end of lease term, guaranteed by the lessee $51,000 Expected residual value of equipment at end of lease term $46,000 Lease term 6 years Economic life of leased equipment 6 years Fair value of asset at January 1, $540,000 Lessor’s implicit rate 9 % Lessee’s incremental borrowing rate 9 % The asset will revert to the lessor at the end of the lease term. The lessee uses the straight-line amortization for all leased equipment. Suppose Crane received a lease incentive of $5,000 from Faldo Leasing to enter the lease. How would the initial measurement of the lease liability and right-of-use asset be affected? Right-of-use asset $enter a…
am. 101.
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Brief Exercise 9-5 (Algo) Record leases (LO9-3) On April 1, 2024, Primer Corporation signs a five-year lease to use office space. The present value of the monthly lease payments is $194,000. Record the lease. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account ield.) View transaction list Journal entry worksheet
The following facts pertain to a non-cancelable lease agreement between Wildhorse Leasing Company and Windsor Company, a lessee. Commencement date June 1, 2025 Annual lease payment beginning with June 1, 2025 $19,998.50 Bargain purchase option price at end of lease term $7,000.00 Lease term Economic life of leased equipment (no salvage value) Lessor's cost Fair value of asset at June 1, 2025 4 years 12 years $56,000 $78,999 Lessor's implicit rate (known to lessee) 6% Lessee's incremental borrowing rate 69 The collectibility of the lease payments by Wildhorse is probable. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) (a) (b) (c) Your answer is partially correct. Prepare a lease amortization schedule for Windsor for the 4-year lease term. (Round answers to 2 decimal places, e.g. 5,275.15.) WINDSOR COMPANY (Lessee) Date 6/1/25 $ 6/1/25 6/1/26 6/1/27 6/1/28 5/31/29 Annual Lease Payment Plus BPO $ Lease…
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