Ashvin Refer to the following lease amortization schedule. The 10 payments are made annually starting with the beginning of the lease. Title does not transfer to the lessee and there is no purchase option or guaranteed residual value. The asset has an expected economic life of 12 years. The lease is noncancelable.Decreasein balance.OutstandingBalance65,37055,370Payment12345678910CashPayment10,00010,00010,00010,00010,000OOOO10,00010,00010,00010,00010,000Multiple Choice$5,000$13,584$5,587,EffectiveInterest$9,00906,0915,6615,1834,6544,0653,4132,688??10,0003,9094,3394,8175,3465,935What is the outstanding balance after payment 9? (Round your answer to the nearest whole coller.)6,5877,312?P51,46147,12242,30536,95931,02424,43717,125?>

An agreement of contract that is prepared to transfer the right to use the resources for a…

Refer to the following ease amortization schedule The 10 payments are made annually starting with the beginning of the lease Tide does not transfer to the lessee and there is no purchase option or guaranteed residual value. The asset has an expected economice of 12 years. The lease is no cancelable Outstanding Decrease in balance Balance 45,370 55,370 Payment 1 2 4 5 6 7 4 9 10 Cash 10,000 10,000 10,000 10,000 10.000 10,000 10,000 10,000 10,000 Effective Interest · 4,091 1,001 5,163 4,054 4,005 3,413 2,000 7 > 10,000 3.909 4,339 4,017 5.935 6,587 7,312 7 7 11,461 47,122 42.305 36,959 31.024 24,437 17,125 7 What is the outstanding balance after payment Sound your answer to the nearest whole doller)

Refer to the following ease amortization schedule The 10 payments are made annually starting with the beginning of the lease Tide does not transfer to the lessee and there is no purchase option or guaranteed residual value. The asset has an expected economice of 12 years. The lease is no cancelable Outstanding Decrease in balance Balance 45,370 55,370 Payment 1 2 4 5 6 7 4 9 10 Cash 10,000 10,000 10,000 10,000 10.000 10,000 10,000 10,000 10,000 Effective Interest · 4,091 1,001 5,163 4,054 4,005 3,413 2,000 7 > 10,000 3.909 4,339 4,017 5.935 6,587 7,312 7 7 11,461 47,122 42.305 36,959 31.024 24,437 17,125 7 What is the outstanding balance after payment Sound your answer to the nearest whole doller)

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 5RE: Use the information in RE20-3. Prepare the journal entries that Garvey Company would make in the...

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Refer to the following lease amortization schedule. The 10 payments are made annually starting with the beginning of the lease. Title does not transfer to the lessee and there is no purchase option or guaranteed residual value. The asset has an expected economic life of 12 years. The lease is noncancelable. Payment CashPayment EffectiveInterest Decreasein balance Outstanding Balance 108,703 1 15,000 15,000 93,703 2 15,000 7,496 7,504 86,200 3 15,000 6,896 8,104 78,096 4 15,000 6,248 8,752 69,343 5 15,000 5,547 9,453 59,891 6 15,000 4,791 10,209 49,682 7 15,000 3,975 11,025 38,656 8 15,000 3,093 11,907 26,749 9 15,000 ? ? ? 10 15,000 ? ? ? What amount would the lessee record as annual amortization on the right-of-use asset using the straight-line method? (Round your answer to the nearest dollar.) Multiple Choice $9,370. $15,000.…
Refer to the following lease amortization schedule. The 10 payments are made annually starting with the beginning of the lease. Title does not transfer to the lessee and there is no purchase option or guaranteed residual value. The asset has an expected economic life of 12 years. The lease is noncancelable. Cash Effective Decrease Outstanding Payment Payment Interest in balance Balance 63,282 1 10,000 10,000 53,282 10,000 6,394 3,606 49,676 3. 10,000 5,961 4,039 45,638 10,000 5,477 4,523 41,114 10,000 4,934 5,066 36,048 6. 10,000 4,326 5,674 30,373 7 10,000 3,645 6,355 24,018 10,000 2,882 7,118 16,901
Refer to the following lease amortization schedule. The 10 payments are made annually starting with the beginning of the lease. Title does not transfer to the lessee and there is no purchase option or guaranteed residual value. The asset has an expected economic life of 12 years. The lease is noncancelable. Payment Cash Payment Effective Interest Decrease in balance Outstanding Balance 63,282 1 10,000 10,000 53,282 2 10,000 6,394 3,606 49,676 3 10,000 5,961 4,039 45,637 4 10,000 5,476 4,524 41,113 5 10,000 4,934 5,066 36,047 6 10,000 4,326 5,674 30,373 7 10,000 3,645 6,355 24,018 8 10,000 2,882 7,118 16,900 9 10,000 ? ? ? 10 10,000 ?…
Refer to the following lease amortization schedule. The 10 payments are made annually starting with the beginning of the lease. Title does not transfer to the lessee and there is no purchase option or guaranteed residual value. The asset has an expected economic life of 12 years. The lease is noncancelable. Payment Cash Payment Effective Interest Decrease in balance Outstanding Balance 83,943 1 12,000 12,000 71,943 2 12,000 6,475 5,525 66,418 3 12,000 5,978 6,022 60,396 4 12,000 5,436 6,564 53,832 5 12,000 4,845 7,155 46,677 6 12,000 4,201 7,799 38,878 7 12,000 3,499 8,501 30,377 8 12,000 2,734 9,266 21,111 9 12,000 ? ? ? 10 12,000 ?…
Refer to the following lease amortization schedule. The 10 payments are made annually starting with the beginning of the lease. Title does not transfer to the lessee and there is no purchase option or guaranteed residual value. The asset has an expected economic life of 12 years. The lease is noncancelable. Payment Cash Payment Effective Interest Decrease in balance Outstanding Balance 101,385 1 15,000 15,000 86,385 2 15,000 8,639 6,361 80,024 3 15,000 8,002 6,998 73,026 4 15,000 7,303 7,697 65,329 5 15,000 6,533 8,467 56,862 6 15,000 5,686 9,314 47,548 7 15,000 4,755 10,245 37,303 8 15,000 3,730 11,270 26,033 9 15,000 ? ? ? 10 15,000…
Refer to the following lease amortization schedule. The 10 payments are made annually starting with the beginning of the lease. Title does not transfer to the lessee and there is no purchase option or guaranteed residual value. The asset has an expected economic life of 12 years. The lease is noncancelable. Payment 1 2 3 Cashi Payment 10 $ 14,000 14,000 14,000 Effective Decrease in Outstanding Interest balance. Balance) $91,519 77,519 72,046 65,971 $0 8,527 7,925 14,000 14,000 14,000 14,000 14,000 14,000 $ 14,000 What is the total effective interest paid over the term of the lease? 7,257 6,515 $ 14,000 5,473 6,075 6,743 7,485. 5,692 4,778 $ 3,763 7 8,308 9,222 $ 10,237 ? 2 59,228 51,743 43,435 34,213 $ 23,976 7
Refer to the following lease amortization schedule. The 10 payments are made annually starting with the beginning of the lease. Title does not transfer to the lessee and there is no purchase option or guaranteed residual value. The asset has an expected economic life of 12 years. The lease is noncancelable. Effective Decrease in Outstanding Balance $ 83,943 balance Payment Cash Payment Interest 1 2 3 4 5 6 7 8 9 10 O Multiple Choice O $ 12,000 12,000 12,000 12,000 12,000 12,000 O 12,000 12,000 12,000 $ 12,000 O 9% What is the effective annual Interest rate? Note: Round final answer to the nearest whole percentage. 6% 11% 6,475 5,978 5,436 4,845 4, 201 7% 3,499 $ 2,734 ? 2 $ 12,000 5,525 6,022 6,564 7,155 7,799 8,501 $ 9,266 ? ? 71,943 66,418 60,396 53,832 46,677 38,878 30,377 $ 21,111 ? ?
H.
Refer to the following lease amortization schedule. The 10 payments are made annually starting with the beginning of the lease. Title does not transfer to the lessee and there is no purchase option or guaranteed residual value. The asset has an expected economic life of 12 years. The lease is noncancelable. Payment 1 2 3 4 5 6 7 8 9 10 O Cash Payment Multiple Choice O $ 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 $ 12,000 O $8,111 $12,000 Effective Decrease in Outstanding Interest balance Balance $81, 108 69,108 64,019 58,421 52,263 45,489 38,038 29,842 $ 20,826 $6,911 $0 6,911 6,402 5,842 5,226 4,549 3,804 $ 2,984 What amount would the lessee record as annual amortization on the right-of- use asset using the straight-line method? Note: Round your answer to the nearest whole dollar. • ? ? $ 12,000 5,089 5,598 6,158 6,774 7,451 8,196 $ 9,016 ? ? ? ?
Kk169.
Refer to the following lease amortization schedule. The five payments are made annually starting with the beginning of the lease. A $1,500 purchase option is reasonably certain to be exercised at the end of the five-year lease. The asset has an expected economic life of eight years. Lease Cash Effective Decrease in Outstanding Payment Payment Interest Balance Balance 40,860 31,960 24,978 17,577 9,731 ?? 0 1 2 3 4 5 6 8,900 8,900 8,900 8,900 8,900 1,500 Multiple Choice $46,000 ?? 1,918 1,499 1,055 What is the total interest paid over the term of the lease? $2.760 ?? 85 ?? 6,982 7,401 7,845 ?? 1,415
Refer to the following lease amortization schedule. The five payments are made annually starting with the beginning of the lease. A $2,300 purchase option is reasonably certain to be exercised at the end of the five-year lease. The asset has an expected economic life of eight years. Lease Payment Cash Payment Effective Interest Decrease in Balance Outstanding Balance 32,350 1 7,000 ?? ?? 25,350 2 7,000 1,775 5,225 20,125 3 7,000 1,409 5,591 14,534 4 7,000 1,017 5,983 8,551 5 7,000 ?? ?? ?? 6 2,300 150 2,150 0 What is the outstanding balance after payment 5? $2,150. $2,300. $2,450. $4,450.