Michanga Contractors Limited acquired equipment on 1 April 2002 on a Finance Lease. The Finance lease terms are: -Lease for a 10-year period -Each annual rental is K44, 000 -Rentals paid annually in areas on 31 March -Original cost of the equipment was K248, 610 -The interest rate implicit in the lease is 12% per year
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Michanga Contractors Limited acquired equipment on 1 April 2002 on a Finance Lease.
The Finance lease terms are:
-Lease for a 10-year period
-Each annual rental is K44, 000
-Rentals paid annually in areas on 31 March
-Original cost of the equipment was K248, 610
-The interest rate implicit in the lease is 12% per year
Required:
Calculate the amounts in respect of this finance lease that would be included in Michanga Contractors Limited financial reports.
- Statement of comprehensive income for the year ended 31 March 2003
Statement of Financial Position as at 31 March 2003- Statement of cash flows for the year ended 31March 2003
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