The present value of the minimum lease payments | $353,441 | ||||
$102,000 x PVA=(n=4, i=6%), $102,000 x 3.46511 | |||||
Residual value ($71,500 - $51,000) | $16,238 | ||||
$20,500 x PV=(n=4, i=6%), $20,500 x 0.79209 | $369,679 | ||||
No. | Date | Accounts Titles and Explanation | Debit | Credit | |
1 | January 01, 2021 | Right-of-use asset | $369,679 | ||
Lease Liability | $369,679 | ||||
2 | December 31, 2021 | Amortization Expense | $92,420 | ($369,679/4 years) | |
Right-of-use asset | $92,420 | ||||
3 | December 31, 2021 | Lease Liability | $79,819 | ||
Interest Expense | $22,181 | ($369,679 x 6%) | |||
Cash | $102,000 | ||||
On January 1, 2021, Maywood Hydraulics leased drilling equipment from Aqua Leasing for a three-year period...
On January 1, 2021, Maywood Hydraulics leased drilling equipment from Aqua Leasing for a three-year period ending December 31, 2024, at which time possession of the leased asset will revert back to Aqua. The equipment cost Aqua $430,152 and has an expected economic life of four years. Aqua expects the residual value at December 31, 2024, to be $66,000. Negotiations led to Maywood guaranteeing a $94,000 residual value. Equal payments under the lease are $132,000 and are due on December...
On January 1, 2021, Maywood Hydraulics leased drilling equipment
from Aqua Leasing for a three-year period ending December 31, 2024,
at which time possession of the leased asset will revert back to
Aqua. The equipment cost Aqua $423,414 and has an expected economic
life of four years. Aqua expects the residual value at December 31,
2024, to be $60,000. Negotiations led to Maywood guaranteeing a
$85,000 residual value.
Equal payments under the lease are $120,000 and are due on
December...
On January 1, 2021, Maywood Hydraulics leased drilling equipment from Aqua Leasing for a three-year period ending December 31, 2024, at which time possession of the leased asset will revert back to Aqua. The equipment cost Aqua $413,307 and has an expected economic life of four years. Aqua expects the residual value at December 31, 2024, to be $51,000. Negotiations led to Maywood guaranteeing a $71,500 residual value. Equal payments under the lease are $102,000 and are due on December...
On January 1, 2021, Maywood Hydraulics leased drilling equipment from Aqua Leasing for a three-year period ending December 31, 2024, at which time possession of the leased asset will revert back to Aqua. The equipment cost Aqua $416,676 and has an expected economic life of four years. Aqua expects the residual value at December 31, 2024, to be $54,000. Negotiations led to Maywood guaranteeing a $76,000 residual value. Equal payments under the lease are $108,000 and are due on December...
On January 1, 2021, Maywood Hydraulics leased drilling equipment from Aqua Leasing for a four-year period ending December 31, 2024, at which time possession of the leased asset will revert back to Aqua. The equipment cost Aqua $412,184 and has an expected economic life of five years. Aqua expects the residual value at December 31, 2024, to be $50,000. Negotiations led to Maywood guaranteeing a $70,000 residual value. Equal payments under the lease are $100,000 and are due on December...
On January 1, 2021, Maywood Hydraulics leased drilling equipment from Aqua Leasing for a four-year period ending December 31, 2024, at which time possession of the leased asset will revert back to Aqua. The equipment cost Aqua $412,184 and has an expected economic life of five years. Aqua expects the residual value at December 31, 2024, to be $50,000. Negotiations led to Maywood guaranteeing a $70,000 residual value. Equal payments under the lease are $100,000 and are due on December...
help me with the interest
expense, please.
On January 1, 2021, Maywood Hydraulics leased drilling equipment from Aqua Leasing for a three-year period ending December 31, 2024, at which time possession of the leased asset will revert back to Aqua. The equipment cost Aqua $413,307 and has an expected economic life of four years. Aqua expects the residual value at December 31, 2024, to be $51,000. Negotiations led to Maywood guaranteeing a $71,500 residual value. Equal payments under the lease...
On January 1, 2021, Maywood Hydraulics leased drilling equipment from Aqua Leasing for a four-year period ending December 31, 2024, at which time possession of the leased asset will revert back to Aqua. The equipment cost Aqua $412,184 and has an expected economic life of five years. Aqua expects the residual value at December 31, 2024, to be $50,000. Negotiations led to Maywood guaranteeing a $70,000 residual value. Equal payments under the lease are $100,000 and are due on December...
On January 1, 2021, Maywood Hydraulics leased drilling equipment from Aqua Leasing for a five-year period ending December 31, 2024, at which time possession of the leased asset will revert back to Aqua. The equipment cost Aqua $418,922 and has an expected economic life of six years. Aqua expects the residual value at December 31, 2024, to be $56,000. Negotiations led to Maywood guaranteeing a $79,000 residual value. Equal payments under the lease are $112,000 and are due on December 31...
On January 1, 2021, Nguyen Electronics leased equipment from Nevels Leasing for a four-year period ending December 31, 2024, at which time possession of the leased asset will revert back to Nevels. The equipment cost Nevels $844,309 and has an expected economic life of five years. Nevels expects the residual value at December 31, 2024, will be $108,000. Negotiations led to the lessee guaranteeing a $156,000 residual value. Equal payments under the lease are $208,000 and are due on December...