Leech Company entered into a lease agreement with Lessor Company with the following terms on January 1, 2020. Space 2 Floors at 1,500 square meters each Annual rental payable at the end of each year 400,000 Implicit interest rate in the lease 10% Lease term 8 years On January 1, 2023, Leese Company and Lessor Company agreed to amend the original terms of the lease with following arrangement: Space 1 Floor at 1,500 square meter Annual rental payable at the end of each year 250,000 Implicit interest rate in the lease 11% REQUIRED: Prepare table of amortization and journal entries for the entire lease term.
Leech Company entered into a lease agreement with Lessor Company with the following terms on January 1, 2020. Space 2 Floors at 1,500 square meters each Annual rental payable at the end of each year 400,000 Implicit interest rate in the lease 10% Lease term 8 years On January 1, 2023, Leese Company and Lessor Company agreed to amend the original terms of the lease with following arrangement: Space 1 Floor at 1,500 square meter Annual rental payable at the end of each year 250,000 Implicit interest rate in the lease 11% REQUIRED: Prepare table of amortization and journal entries for the entire lease term.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter20: Accounting For Leases
Section: Chapter Questions
Problem 6P: Sales-Type Lease with Unguaranteed Residual Value Lessor Company and Lessee Company enter into a...
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Leech Company entered into a lease agreement with Lessor Company with the following terms on January 1, 2020.
Space 2 Floors at 1,500 square meters each
Annual rental payable at the end of each year 400,000
Implicit interest rate in the lease 10%
Lease term 8 years
On January 1, 2023, Leese Company and Lessor Company agreed to amend the original terms of the lease with following arrangement:
Space 1 Floor at 1,500 square meter
Annual rental payable at the end of each year 250,000
Implicit interest rate in the lease 11%
REQUIRED: Prepare table of amortization and
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