Example : on 1.1 2019 Salalah company leased Equipment from ABC company, the fair value of Equipment RO 250000 and useful life of it 5 years without residual value, The terms and provisions of the lease agreement and other pertinent data are as follows: 1. The lessee paid rental payments of RO 59954 at the beginning of each year 1. The lessee’s incremental borrowing rate 12% and lessor’s implicit rate 10% which is known by the lessee. 2. Required: Prepare Amortization Schedule and recorded journal entries. (lessee) 1.1.2019
Example : on 1.1 2019 Salalah company leased Equipment from ABC company, the fair value of Equipment RO 250000 and useful life of it 5 years without residual value, The terms and provisions of the lease agreement and other pertinent data are as follows: 1. The lessee paid rental payments of RO 59954 at the beginning of each year 1. The lessee’s incremental borrowing rate 12% and lessor’s implicit rate 10% which is known by the lessee. 2. Required: Prepare Amortization Schedule and recorded journal entries. (lessee) 1.1.2019
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Example : on 1.1 2019 Salalah company leased Equipment from ABC company, the fair value of Equipment RO 250000 and useful life of it 5 years without residual value, The terms and provisions of the lease agreement and other pertinent data are as follows:
1. The lessee paid rental payments of RO 59954 at the beginning of each year
1. The lessee’s incremental borrowing rate 12% and lessor’s implicit rate 10% which is known by the lessee.
2. Required: Prepare Amortization Schedule and recorded journal entries. (lessee)
1.1.2019
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