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  • Chapter 18 Lab

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    Tran Kim Tram Phan
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    The document contains information about several leases, including calculations of right-of-use assets, lease liabilities, interest expenses, and depreciation expenses over various lease terms. It provides the journal entries to record a lease over 3 years with annual payments of $1620 and a residual value of $1000.

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    The document contains information about several leases, including calculations of right-of-use assets, lease liabilities, interest expenses, and depreciation expenses over various lease terms. It provides the journal entries to record a lease over 3 years with annual payments of $1620 and a residual value of $1000.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    1 views6 pages

    Chapter 18 Lab

    Uploaded by

    Tran Kim Tram Phan
    The document contains information about several leases, including calculations of right-of-use assets, lease liabilities, interest expenses, and depreciation expenses over various lease terms. It provides the journal entries to record a lease over 3 years with annual payments of $1620 and a residual value of $1000.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 6

    Bc short term lease

    Rental expense 3700


    Cash 3700
    Monthy entry

    not short term lease anymore

    i/y 0.005
    n 12
    pmt 3700
    fv 0
    pv $43,205.00

    ROU asset $43,205.00


    Lease liability $43,205.00
    i/y 8%
    n 3
    pmt 150000
    fv 45000
    pv $453,212.16 Lease liabilty
    45,000
    $498,212.16 ROU asset

    ROU asset $498,212.16


    Lease liabilty $453,212.16
    Cash 45,000

    Date
    Jan 1, $453,212.16
    Jan 1, 20x2 -150,000 $24,256.97 $327,469.14
    Jan 1, 20x3
    Step 1:figure out payments

    Rate 9%
    Term 5
    PV -250,000
    FV 50,000

    PMT $51,301.37

    Step 2: IRS 16

    Rate 9%
    Term 5
    PMT $51,301.37
    FV 20,000 only payment expected to be made

    PV $230,502.06

    20x6

    RPU Asset $230,502.06


    Lease liabilty $230,502.06

    Lease liabilty $51,301.37


    Cash $51,301.37

    20x7
    Interest Expense $16,128.06
    Lease liability $16,128.06

    Lease liabilty $51,301.37


    Cash $51,301.37

    Depreciation expense $46,100.41


    Acc. Deprecitaion $46,100.41

    Under IFRS, do not inclued expected payment under residual value for calculating depreciation
    i/y 14%
    n 6
    pmt 20,000
    fv 0
    pv $88,661.62

    Period opening balanInterest Payment Ending balance


    2001 $88,661.62 -20000 $68,661.62
    2002 $68,661.62 $9,612.63 -20000 $58,274.25
    2003 $58,274.25 $8,158.39 -20000 $46,432.64
    2004 $46,432.64 $6,500.57 -20000 $32,933.21
    2005 $32,933.21 $4,610.65 -20000 $17,543.86
    2006 $17,543.86 $2,456.14 -20000 $0.00

    20x1
    ROU Asset $88,661.62
    Lease liabilty $88,661.62

    Lease liability 20,000


    Cash 20,000

    20x2
    Interest expense $9,612.63
    Lease liability $9,612.63

    Lease liability 20,000


    Cash 20,000

    Depreciation expesne $14,776.94


    acc. Depreciation $14,776.94

    20x3
    ROU asset $8,158.39
    Lease liabilty $8,158.39

    Lease liability 20000


    Cash 20000

    Depreciation expesne 14776.9366


    acc. Depreciation 14776.9366

    Balance sheet
    ROU asset $88,661.62
    AD -44330.8097
    $44,330.81

    Lease liability $32,933.21


    Current
    Payment 20,000
    $4,610.65
    $15,389.35
    Current lease loiability $15,389.35
    Non current $17,543.86
    i/y 10%
    n 3
    pmt 1620
    fv 1000
    pv $5,182.89

    Entries
    1 april 20z5- commencement of the lease
    ROU Asset $5,182.89
    Lease liabilot $3,562.89
    Cash 1620

    Period opening balanInterest Payment Ending balance


    1 April 20x5 $3,562.89
    1 april 20x6 $3,562.89 $356.29 -1620 $2,299.17
    1 april 20x7 $2,299.17 $229.92 -1620 $909.09
    1 april 20x8 $909.09 $90.91 -1000 $0.00

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