Instruction: Input appropriate amounts in grey shaded cells

Discount rate
First year discount variable 100.00%

Years Amounts Discount Discounted amounts

What are the journals for Ezy-Equip’s lease contract recorded on initial recognition? 
variable

Lease payments 2016 - paid on commencement Dr Right-of-use asset

2017 1.00 - Cr Lease liability
2018 1.00 - Cr Cash (lease payment)
2019 1.00 - Recording the right-of-use-asset and lease liability at inception at the
present value of lease payments over the lease term.
2020 1.00 -
2021 1.00 -
2022 1.00 - Dr Right-of-use asset
2023 1.00 - Cr Cash (Initial direct costs)
2024 1.00 - Recording the payment of initial direct costs.
2025 1.00 -
2026 1.00 -
2027 1.00 -
2028 1.00 -
2029 1.00 -
2030 1.00 -
Unguaranteed residual guarantee 2030 1.00 -

Present value of lease payments -

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