ANSWER LETTER F ONLY !ANSWER LETTER F ONLY !ANSWER LETTER F ONLY !ANSWER LETTER F ONLY ! Can you show also amortization table. I will give upvote if you do. Thank you! Problem 2. Finance Lease -Sales Type LeaseOn January 1, 20x1, ABC Co leased equipment to XYZ,on the lease is shown below:Inc.InformationCost of EquipmentP300,000Useful life of the Equipment5 yearsLease Term4 yearsAnnual Rent Payable at the start of each year100,000Market Rate of Interest10%ABCincurreddirectCost(broker'scommission)ofP20,000innegotiating the lease. The lease qualifies as a sales lease type.Requirements: Compute for the following:a. Gross Investment in the lease on Januar y 1, 20x1b. Net-inves tment in the lease on January 1, 20x1c. Total interest income to be recognized over the lease termd. Gross Profit and net-profit from the salee. Prepare an amortization schedulef. Preparejournal entries on January 1,20x1, December 31, 20x1 andJanuary 1, 20х2.

A Sales type lease is in the nature of a sale. Here the lessor is selling the product to the lessee.…

Answered: f. Prepare journal entries on January…

Business

Accounting

f. Prepare journal entries on January 1,20x1, December 31, 20x1 and January 1, 20x2.

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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Question

ANSWER LETTER F ONLY !

Can you show also amortization table. I will give upvote if you do. Thank you!

Problem 2. Finance Lease -
Sales Type Lease
On January 1, 20x1, ABC Co leased equipment to XYZ,
on the lease is shown below:
Inc.
Information
Cost of Equipment
P300,000
Useful life of the Equipment
5 years
Lease Term
4 years
Annual Rent Payable at the start of each year
100,000
Market Rate of Interest
10%
ABC
incurred
direct
Cost
(broker's
commission)
of
P20,000
in
negotiating the lease. The lease qualifies as a sales lease type.
Requirements: Compute for the following:
a. Gross Investment in the lease on Januar y 1, 20x1
b. Net-inves tment in the lease on January 1, 20x1
c. Total interest income to be recognized over the lease term
d. Gross Profit and net-profit from the sale
e. Prepare an amortization schedule
f. Prepare
journal entries on January 1,20x1, December 31, 20x1 and
January 1, 20х2.

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