Accounting question, thank you for the help!
Solution-
1. | Effect on earnings | $(29000) |
2. | Lease payable balance (end of year) | $132349 |
Right-of-use asset balance (end of year) | $161349 |
Working-1
Present value of annuity = 5.96764 (n=9 , i=12%)
29000 * 5.96764 =173061.56(right of use)
12%(173062-29000) =17287.44(interest exp)
29000 - 17287 = 11713(amortization-right of use)
11713+17287 = 29000
Working-2
173062 - 29000 - 11713 = 132349 (end of yr bal-liab)
Working-3
173062 - 11713 = 161349 (end of yr bal-assets)
Accounting question, thank you for the help! At January 1, 2021, Café Med leased restaurant equipment...
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help asap please
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