In the long-term liabilities section of its balance sheet at December 31, 2019, Gwapo Kaayo Co. reported a lease liability of ₱75,000, net of current portion of ₱1,364. Payments of ₱9,000 were made on both January 2, 2020, and January 2, 2021. Gwapo Kaayo’s incremental borrowing rate on the date of the lease was 11% and the lessor's implicit rate, which was known to Gwapo Kaayo, was 10%. In its December 31, 2x20, balance sheet, what amount should Gwapo Kaayo report as lease liability, net of current portion?
In the long-term liabilities section of its balance sheet at December 31, 2019, Gwapo Kaayo Co. reported a lease liability of ₱75,000, net of current portion of ₱1,364. Payments of ₱9,000 were made on both January 2, 2020, and January 2, 2021. Gwapo Kaayo’s incremental borrowing rate on the date of the lease was 11% and the lessor's implicit rate, which was known to Gwapo Kaayo, was 10%. In its December 31, 2x20, balance sheet, what amount should Gwapo Kaayo report as lease liability, net of current portion?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
In the long-term liabilities section of its
December 31, 2019, Gwapo Kaayo Co. reported a lease liability of
₱75,000, net of current portion of ₱1,364. Payments of ₱9,000 were
made on both January 2, 2020, and January 2, 2021. Gwapo Kaayo’s
incremental borrowing rate on the date of the lease was 11% and the
lessor's implicit rate, which was known to Gwapo Kaayo, was 10%.
In its December 31, 2x20, balance sheet, what amount should Gwapo
Kaayo report as lease liability, net of current portion?
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