inducement to enter to the lease, the lessor granted Relief Co.the first two months of the lease as rent-free.Requirement:a. Provide all the journal entries over the lease term.b. Determine the amount(s) to be presented in Relief Co.'s Dec.31, 20x2 statement of financial position. to smobe diwdoil3. On January 1, 20x1, Relief Co. enters into a 3-year lease of a setof molds; dies and patterns. Relief Co. assesses that the lease isa lease of an underlying asset of low value and elects to applythe recognition exemptions of PFRS 16. The annual leasepayments, payable at the end of each year, are: P18,000 in20x1, P20,000 in 20x2, and P22,000 in 20x3. However, as an

Lessee exemption for the short term leases: As an accounting policy, a lessee may elect not to apply…

Answered: Requirement: a. Provide all the journal…

Requirement: a. Provide all the journal entries over the lease term. b. Determine the amount(s) to be presented in Relief Co.'s Dec. 31, 20x2 statement of financial position.

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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Concept explainers

Leasing

Leasing is a contractual arrangement in which someone (a lessee) pays the owner (or lessor) of a building, land, vehicle, or other asset for the use of that asset. The lease is the agreement between lessee and lessor.

Question

inducement to enter to the lease, the lessor granted Relief Co.
the first two months of the lease as rent-free.
Requirement:
a. Provide all the journal entries over the lease term.
b. Determine the amount(s) to be presented in Relief Co.'s Dec.
31, 20x2 statement of financial position.

to sm
obe diw
doil
3. On January 1, 20x1, Relief Co. enters into a 3-year lease of a set
of molds; dies and patterns. Relief Co. assesses that the lease is
a lease of an underlying asset of low value and elects to apply
the recognition exemptions of PFRS 16. The annual lease
payments, payable at the end of each year, are: P18,000 in
20x1, P20,000 in 20x2, and P22,000 in 20x3. However, as an

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