Alschular Leasing Co. leased a computer system (six-year life) to McKee Electronics with a six-year capital lease. Both parties used the amortization schedule shown to record the lease. Both parties expect the salvage value to be $6,000. Alschular paid $13,000 in legal and recording fees to execute the lease documents.
What is the impact in the income statement for the year ended September 30, 2013 for Alschular of this lease (revenue as a positive amount and expense as a negative amount)?
Enter without dollar signs, without commas and rounded to whole dollars.
Question: What is the impact in the income statement for the year ended September 30, 2013 for Alschular of this lease (revenue as a positive amount and expense as a negative amount)?
Answer: We will account for as accrued Income/Exp till Sept, 30, 2013 from 10/01/2013 as accounting till that receipt has already been recorded.
263 days. as agaist 365 days. accounting till Sept. 30, 2013 will be done for Lease Rental & Interest amount
.Accured Income Dr. =62700*263/365=45178.356
To Lease Receivable
(being lease rental dues upto part of the year ending on Sept. 30, 2013)
Accured Unearned Interest Revnue Dr=23768*263/365=17125.984
To Interest Revenue
(being interel duesst upto part of the year ending on Sept. 30, 2013)
Alschular Leasing Co. leased a computer system (six-year life) to McKee Electronics with a six-year capital...
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