1Record the beginning of the lease for Baillie Power.2 Record the quarterly lease payment made by BailliePower.3 Record the quarterly lease payment made by BailliePower.4 Record amortization of the right-of-use asset for BailliePower.5 Record the quarterly lease payment made by BailliePower.6 Record amortization of the right-of-use asset for BailliePower.7 Record the quarterly lease payment made by BailliePower.8 Record amortization of the right-of-use asset for BailliePower.9 Record the quarterly lease payment made by BailliePower.10 Record amortization of the right-of-use asset for BailliePower.Note := journal entry has been enteredRecord entryClear entryΤΤΤΤ1ViewC Baillie Power leased high-tech electronic equipment from Courtney Leasing on January 1, 2021. Courtney purchased the equipmentfrom Doane Machines at a cost of $252,000, its fair value. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Useappropriate factor(s) from the tables provided.)Related Information:Lease termQuarterly lease paymentsEconomic life of assetInterest rate charged by the lessorRequired:Prepare a lease amortization schedule and appropriate entries for Baillie Power from the beginning of the lease through December 31,2021. December 31 is the fiscal year end for each company. Appropriate adjusting entries are recorded at the end of each quarter.Complete this question by entering your answers in the tabs below.AmortScheduleGeneralJournal01/01/202103/31/202106/30/202109/30/202112/31/202103/31/202206/30/202209/30/2022TotalPrepare a lease amortization schedule. (Round your intermediate calculations and final answers to the nearest whole dollar.Enter all amounts as positive values.)Payment Date2 years (8 quarterly periods)$17,000 at Jan. 1, 2021, and at Mar. 31, June 30, Sept. 30, and Dec. 31thereafter5 years12%LeasePaymentsEffectiveInterestDecrease inBalanceLease Balance

A lease is an arrangement where a lessor agrees to allow a lessee to control the use of the asset…

ecord the beginning of the lease for Baillie Power. ecord the quarterly lease payment made by Baillie ower. ecord the quarterly lease payment made by Baillie ower. ecord amortization of the right-of-use asset for Baillie ower. ecord the quarterly lease payment made by Baillie ower. ecord amortization of the right-of-use asset for Baillie ower. ecord the quarterly lease payment made by Baillie ower. ecord amortization of the right-of-use asset for Baillie ower. ecord the quarterly lease payment made by Baillie ower.

ecord the beginning of the lease for Baillie Power. ecord the quarterly lease payment made by Baillie ower. ecord the quarterly lease payment made by Baillie ower. ecord amortization of the right-of-use asset for Baillie ower. ecord the quarterly lease payment made by Baillie ower. ecord amortization of the right-of-use asset for Baillie ower. ecord the quarterly lease payment made by Baillie ower. ecord amortization of the right-of-use asset for Baillie ower. ecord the quarterly lease payment made by Baillie ower.

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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Owefix a. compute the amount of lease receiveable for the leaseb. discusd the bethre of the leasec. prepara an amoritization table for the lessee and lessor
Each of the four independent situations below describes a finance lease in which annual lease payments are payable at the beginning of each year. The lessee is aware of the lessor's implicit rate of return. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Situation 1 2 3 4 Lease term (years) Lessor's rate of return. 5 10% 8 11% 6 9 9% 12% Fair value of lease asset $ 67,000 $ 367,000 $ 92,000 Lessor's cost of lease asset $ 67,000 $ 367,000 $ 62,000 $ 482,000 $ 482,000 Residual value: Estimated fair value Guaranteed fair value 0 $ 67,000 $ 24,000 $ 36,000 0 0 $ 24,000 $ 41,000 Required: a. & b. Determine the amount of the annual lease payments as calculated by the lessor and the amount the lessee would record as a right-of-use asset and a lease liability, for each of the above situations. Note: Round your answers to the nearest whole dollar amount. Lease Payments Residual Value PV of Lease Guarantee Payments PV of…
See attached picture C) What expenses related to this lease will Evans incur during the first year of the lease, and how will they be determined?
What is the proper accounting treatment to record a variable lease payment indexed off the CPI? Group of answer choices Record the lease liability based on highest annual increase in the CPI for the past 10 years. Calculate the lease liability based on the base payment and debit an additional expense in subsequent years based on the change in the CPI. Calculate the lease liability based on expected payments over the life of the lease after considering increases in the CPI. Capitalize and depreciate the increased payments based on CPI indexing.
Visno
Each of the three independent situations below describes a finance lease in which annual lease payments are payable at the beginning of each year. The lessee is aware of the lessor's implicit rate of return. Note: Use tables, Excel, or a financial calculator. (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) Lease term (years) Lessor's rate of return (known by lessee) Lessee's incremental borrowing rate Fair value of lease asset Situation 11 Situation 2 Situation 3 Lease Payments 10 11% 12% Right-of-use Asset/Lease Payable $780,000 Situation 20 9% 10% $1,150,000 3 Required: a. & b. Determine the amount of the annual lease payments as calculated by the lessor and the amount the lessee would record as a right-of-use asset and a lease liability, for each of the above situations. Note: Round your answers to the nearest whole dollar. 6 12% 11% $365,000
Each of the four independent situations below describes a finance lease in which annual lease payments are payable at the beginning of each year. The lessee is aware of the lessor's implicit rate of return. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Situation 1 2 3 4 Lease term (years) Lessor's rate of return 4 10% 7 11% 5 8 9% 12% Fair value of lease asset $ 56,000 $ 356,000 $ 81,000 $ 471,000 Lessor's cost of lease asset $ 56,000 $ 356,000 $ 51,000 $ 471,000 Residual value: Estimated fair value 0 $ 56,000 Guaranteed fair value 0 0 $ 13,000 $13,000 $ 51,000 $ 56,000 Required: a. & b. Determine the amount of the annual lease payments as calculated by the lessor and the amount the essee would record as a right-of-use asset and a lease liability, for each of the above situations. Note: Round your answers to the nearest whole dollar amount. Answer is complete but not entirely correct. Lease Payments Residual…
Each of the four independent situations below describes a sales-type lease in which annual lease payments a at the beginning of each year. Each is a finance lease for the lessee. (FV of $1, PV of $1, FVA of $1, PVA of $1, $1) (Use appropriate factor(s) from the tables provided.) Situation 1 2 3 Lease term (years) 7 7 8 Lessor's and lessee's interest rate Residual value: 8 128 98 11% 10% Estimated fair value 0 $50,000 $8,000 $50,000 Guaranteed by lessee 0 0 $8,000 $60,000 Determine the following amounts at the beginning of the lease. (Round your intermediate and final answers dollar amount.) Situation 2 A The lessor's: 1. Lease payments 2. Gross investment in the lease 3. Net investment in the lease The lessee's: 4. Lease payments 5. Right-of-use asset 6. Lease payable B
Each of the three independent situations below describes a finance lease in which annual lease payments are payable at the end of each year. The lessee is aware of the lessor's implicit rate of return. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Lease term (years) Lessor's rate of return (known by lessee) Lessee's incremental borrowing rate Fair value of lease asset Situation 1 Situation 2 Situation 3 Lease Payments Right-of-use Asset/Lease 1 Payable 10 10% 11% $780,000 Situation 2 15 8% 9% $1,070,000 Required: a. & b. Determine the amount of the annual lease payments as calculated by the lessor and the amount the lessee would record as a right-of-use asset and a lease liability, for each of the above situations. Note: Round your answers to the nearest whole dollar. 3 5 11% 10% $275,000
Manji
am. 127.
Each of the three independent situations below describes a finance lease in which annual lease payments are payable at the beginning of each year. The lessee is aware of the lessor's implicit rate of return. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Lease term (years) Lessor's rate of return (known by lessee) Lessee's incremental borrowing rate Fair value of lease asset Situation 1 Situation 2 Situation 3 Lease Payments Right-of-use Asset/Lease 1 Payable 11 10% 11% $730,000 Situation 2 21 8% 9% $1,110,000 Required: a. & b. Determine the amount of the annual lease payments as calculated by the lessor and the amount the lessee would record as a right-of-use asset and a lease liability, for each of the above situations. Note: Round your answers to the nearest whole dollar. 3 4 11% 10% $315,000