Hd.23. On January 1, 2021, Aylmer (follows IFRS) decided to lease a machine. The accountant at the time did not know how torecord this asset. NO TRANSACTIONS relating to leases were recorded. The following information pertains to the leasedmachine:The lease term is 6 years and the economic life of the asset is 7 years.The annual payment is $22,740. This payment includes annual executory costs (insurance) of $890. The remainder is thelease payment.Interest rate associated with this lease is 5.75%.In the Excel spreadsheet, see the tab labelled "Leased Liability" to make the appropriate calculations and requirements forreconciling the lease information.Present Value Calculation & Amortization SchedulePVRateNperPymtFVTypeRequired: Prepare all the appropriate entries (including setup up the asset, the liability and any payments and interest) forthe year 2021

Given Lease Term = 6 years Annual lease payment = $22740 Economic Life of asset =7 years Interest…

Answered: "Leased Liability":

Business

Accounting

"Leased Liability":

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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