Fairy Value. = $16,000 — Lease term: $xI2 = 26 months T Mowthly payment © = $800 $5o (mount enance.) — Interest Rate = 4nd — Useful Ufe = Byrs ~ Povtopin Price > $ deco - PY Fact pee] Ca t [= Cit cia ie (it 2% Owuyyn = 3398366899 2 223'993F PV = BUBB. x 33-9834 | 152920665 215273 pte nature et Lease 3— L- Mestion of Ounership Francfer 2 @> An Containe a Bargain - Purchase Ophian? Wee TA entif 3- Lease term > 45+]. of He economic Ute OF the leased property ? We) 3B xloo = 60+) . G- PV of minium Lease payments 2 V0-/ of FMV (foie martcet Valu) of Property 7 Pv bis2a% FMV] 4dbp, 00 ($243 xloo = 15-58 = 164, Ibe00 (es)im Period | tease Principal | Lease [ (eee) permet Interest | amount | Liability | * : 15293 a0 | 0 450 14843 450 49 401 14442, 450 40 410 11601 450 39 aul 11190 450 37 413 10777 450 36 44 10363 450 35 as 9948 450 33 aly 9531 450 32__| 418 9113 450 30 420 8693 1 2 3 4 5 6 7 8 9 10 1 2 1 2 3 4 ) 5 450 29 421 8272 6 7 8 9 10 iL 12 1 2 3 4 8 6 7 8 9se is Ca pitabired wf any. ome ak Tega , — Criterios Gre full filet. _ First month firet wer Leased forklift Lease Liatoi Uy Mouptenance Expense _ lease Liabiury Cash Depreciation Expense ~ Recum: Depresiotian ¢ 19293 536) Maslenance Expense lease Labi lylaveat Expense : Cosh - Depreciation Expense _ Accum: DepreuabamMount Cn aince Expense, lease Liab li or Interest Expense _ 4B ae : Cach _ 5e0 Pepreviation Expense u25 - - = Aecum: De prectactian 425 Fourth watts Maimntenane Expense 5o0 Lense Heat Hor | Interest Expen ant = Cash Seo _ De preci ation Expense _ yas _ Accum + Depreciation, 425 Jounal entries in booksop bsgor s— Fivet mouth a - lease Receivable _ 19243 _ For Rutt 15263. pCagh eee Pees OO eet Meinknance Expense So leone Receivable _ e212) BeCosh - Bow 3 Martenane Expense To lease Re cofvouste Got i Intevest Recevable 44 Tuyd mouth Cash Seo - Mairtenance Expense _ So Lease Receivaby Ged | Itereat y — 4@ Fourth, monty Corl Soe 3 Modntenance. Expense So lease Recerverble oR Letevest 4 Ut | wating Late ¢ Journal eataies for bvokt Of lescee Ast meth Rent Expense Rewt Expense bes Gath Soo Bed Ment Kent Ex pense aSouvnat envied fry bool’ of lonsor det worth Cos ty Rentou Revenue _ Dep: Expense Accum : Dep 2nd month Cash Rentod Revenue Dep: Ex pense Pee + Dep: Sra_wontr Cath Reutod Revenue. Pep: Expense Accum: eps Seo Sao 425 425 5eo Bon Gas: oo Boo 5eo 425 242sepost Life, = lays — lease term = qyrs - Bnnvel page s = 4 G,v00 — Four Value = $28, coo ~ Interest Pate = to] PV Foe tov [ea" ] (ti) ['= (toi | (ue) = 244 BGBS144) & 34 B6S a 3° 4 B6BX B000 2 2B + Bl Sas : = 2484S” a Lountif the vechwe of | lease ¢— \- Meahon of Dwhsw'p trams fer 2, ace 2- Lowtosns ot Bar goun- Purchase Ophea? (Nis) Bo Lease term 2 TS]. of the econoume Lite Of tne Leased property? (1) Ux 0d = 100s, uy &-Pv of | vain inna | Lene apments > FMV of Prener4 - Pye 2704 Sot of ENV ec 2%, ev. Lapa pleee = 94% 625°]. Eee h 24,000 _ / Lease Is Capit inh if a one o Passe _ Gaterias| owe fast fiech nee tS ;Period lease Principal | Lease (Years) | payment| Interest | amount | Liability : 27895 x 1 8000 0 8000 19895 2 8000 1990. | 6011 13885 3 8000 1388 6612 7273 4 8000 727 7273 0 r _ iB __| wo __ Em = I oe A — = _—Lessee 2 1 Apri 2004 ae : Leased moons 27 845 _ _ Lease Liab 2FB49 oe Cosh _ ‘dove 21 Dec, 200% Beptesiabien Expense _ 6444 cu’ 0 ie -teyoas! Gh -Beps__..64 ‘ Interest Expense. if ©1440 : interest Pagable tree | 2 Ape | rit ag ee Lease Wabiuty _ : Goll Interest P le 1440 a TFournat ertries IN books o, | April, 2004 Boece geese Lease Receivabk 248457 Boro ed maciimg 27845 Can _ Bove lente veceivable «Oe 32. Oe, 2009 _ ne “Jnterext Recavable (140 kta Reve 40 DL April old a Cash Soe : lense Receivable Gol) Unters} Reeivable 11%Qperotiont Wr3& 3 Jeurnal eafnes pr eects of lessee LPpr't, pep t —— Reat Ex pense 9000 : Gosh Beod a Apot, 2010 = Rent Expense Bo0e Cath 8000 2 Apal zell Rent Expense. Boor Cash__ Bow? Journal otries for bee bs of lessor A April, 2004 Gash : Bvee Yertod yvonne Boop Expense. 649 : Accum Dep: 61% Osh Soow _ routed yevenu Baws 6444, oh oT ee Vented Fevenmer