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Pier10 Inc. entered into a five-year lease and recorded a right-of-use asset and lease liability of $132,000 on anuary 1. Pier10 Inc. was aware of the lessor's implicit rate of interest of 5%. The equipment under lease had an estimated five-year useful life with no residual value. The first lease payment of $29,037 was due upon commencement of the lease. Show the balance sheet presentation on December 31, and the income statement presentation for the year ended December 31.

Pier10 Inc. entered into a five-year lease and recorded a right-of-use asset and lease liability of $132,000 on anuary 1. Pier10 Inc. was aware of the lessor's implicit rate of interest of 5%. The equipment under lease had an estimated five-year useful life with no residual value. The first lease payment of $29,037 was due upon commencement of the lease. Show the balance sheet presentation on December 31, and the income statement presentation for the year ended December 31.

FINANCIAL ACCOUNTING
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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Reporting a Finance Lease Pier10 Inc. entered into a five-year lease and recorded a right-of-use asset and lease liability of $132,000 on January 1. Pier10 Inc. was aware of the lessor's implicit rate of interest of 5%. The equipment under lease had an estimated five-year useful life with no residual value. The first lease payment of $29,037 was due upon commencement of the lease. Show the balance sheet presentation on December 31, and the income statement presentation for the year ended December 31. • Note: Round your answers to the nearest whole dollar. • Note: Do not use negative signs with your answers. Balance Sheet Assets Noncurrent assets: Liabilities Current liabilities: Noncurrent liabilities: Income Statement Expenses Interest Expense December 31 ◆ $ ◆ $ ◆ $ 0 $ ◆ $ 0 0 December 31 O O 0 0
Transcribed Image Text:Reporting a Finance Lease Pier10 Inc. entered into a five-year lease and recorded a right-of-use asset and lease liability of $132,000 on January 1. Pier10 Inc. was aware of the lessor's implicit rate of interest of 5%. The equipment under lease had an estimated five-year useful life with no residual value. The first lease payment of $29,037 was due upon commencement of the lease. Show the balance sheet presentation on December 31, and the income statement presentation for the year ended December 31. • Note: Round your answers to the nearest whole dollar. • Note: Do not use negative signs with your answers. Balance Sheet Assets Noncurrent assets: Liabilities Current liabilities: Noncurrent liabilities: Income Statement Expenses Interest Expense December 31 ◆ $ ◆ $ ◆ $ 0 $ ◆ $ 0 0 December 31 O O 0 0
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