Year | PV factor @ 8% |
1 | 0.92593 |
2 | 0.85734 |
3 | 0.79383 |
Total | 2.57710 |
Lease payment (91000/2.57710) | $ 35,311 |
Lease Amortization Schedule | ||||
Date | Annual Lease Payment | Interest on Liability | Reduction of Lease Liability | Lease Liability |
Jan 1, 2017 | $ 91,000 | |||
Dec 31, 2017 | $ 35,311 | $ 7,280 | $ 28,031 | $ 62,969 |
Dec 31, 2018 | $ 35,311 | $ 5,038 | $ 30,273 | $ 32,696 |
Dec 31, 2019 | $ 35,311 | $ 2,616 | $ 32,695 | $ 0 |
Interest on Liability = Beginning Lease Liability * 8% | ||||
Reduction of Lease Liability = Annual Lease Payment - Interest on Liability | ||||
Lease Liability = Beginning Lease Liability - Reduction of Lease Liability |
Date | General Journal | Debit | Credit |
Jan 1, 2017 | Lease receivable | $ 91,000 | |
Cost of goods sold | $ 65,000 | ||
Inventory (If the company have business of sales of machinery) / Equipment | $ 65,000 | ||
Sales revenue | $ 91,000 | ||
(To record lease agreement for sales-type lease.) |
Crane Leasing Company leases a new machine to Sharrer Corporation. The machine has a cost of $65,...
Sheridan Leasing Company leases a new machine to Sharrer Corporation. The machine has a cost of $65,000 and fair value of $88,000. Under the 3-year, non-cancelable contract, Sharrer will receive title to the machine at the end of the lease. The machine has a 3-year useful life and no residual value. The lease was signed on January 1, 2017. Sheridan expects to earn an 8% return on its investment, and this implicit rate is known by Sharrer. The annual rentals...
Carla Vista Leasing Company leases a new machine to Sharrer Corporation. The machine has a cost of $65,000 and fair value of $89,000. Under the 3-year, non-cancelable contract, Sharrer will receive title to the machine at the end of the lease. The machine has a 3-year useful life and no residual value. The lease was signed on January 1, 2020. Carla Vista expects to earn an 8% return on its investment, and this implicit rate is known by Sharrer. The...
Crane Leasing Company leases a new machine to Sharrer Corporation. The machine has a cost of $65,000 and fair value of $85,500. Under the 3-year, non-cancelable contract, Sharrer will receive title to the machine at the end of the lease. The machine has a 3-year useful life and no residual value. The lease was signed on January 1, 2020. Crane expects to earn an 8% return on its investment, and this implicit rate is known by Sharrer. The annual rentals...
Blossom Leasing Company leases a new machine to Sharrer Corporation. The machine has a cost of $65,000 and fair value of $90,500. Under the 3-year, non-cancelable contract, Sharrer will receive title to the machine at the end of the lease. The machine has a 3-year useful life and no residual value. The lease was signed on January 1, 2020. Blossom expects to earn an 8% return on its investment, and this implicit rate is known by Sharrer. The annual rentals...
Exercise 21A-7 b-e Carla Vista Leasing Company leases a new machine to Sharrer Corporation. The machine has a cost of $65,000 and fair value of $94,500. Under the 3-year, non-cancelable contract, Sharrer will receive title to the machine at the end of the lease. The machine has a 3-year useful life and no residual value. The lease was signed on January 1, 2017. Carla Vista expects to earn an 8% return on its investment, and this implicit rate is known...
Wildhorse Leasing Company leases a new machine to Sharrer Corporation. The machine has a cost of $65,000 and fair value of $95,500. Under the 3-year, non-cancelable contract, Sharrer will receive title to the machine at the end of the lease. The machine has a 3-year useful life and no residual value. The lease was signed on January 1, 2020. Wildhorse expects to earn an 8% return on its investment, and this implicit rate is known by Sharrer. The annual rentals...
Exercise 21-07 b-e Carla Vista Leasing Company leases a new machine to Sharrer Corporation. The machine has a cost of $65,000 and fair value of $94,500. Under the 3-year, non-cancelable contract, Sharrer will receive title to the machine at the end of the lease. The machine has a 3-year useful life and no residual value. The lease was signed on January 1, 2020. Carla Vista expects to earn an 8% return on its investment, and this implicit rate is known...
Exercise 21-5 Waterway Leasing Company leases a new machine that has a cost and fair value of $87,000 to Sharrer Corporation on a 3-year noncancelable contract. Sharrer Corporation agrees to assume all risks of normal ownership including such costs as insurance, taxes, and maintenance. The machine has a 3-year useful life and no residual value. The lease was signed on January 1, 2017. Waterway Leasing Company expects to earn a 10% return on its investment. The annual rentals are payable...
Exercise 21-5 Waterway Leasing Company leases a new machine that has a cost and fair value of $87,000 to Sharrer Corporation on a 3-year noncancelable contract. Sharrer Corporation agrees to assume all risks of normal ownership including such costs as insurance, taxes, and maintenance. The machine has a 3-year useful life and no residual value. The lease was signed on January 1, 2017. Waterway Leasing Company expects to earn a 10% return on its investment. The annual rentals are payable...
INTERMEDIATE ACCOUNTING (ACCT 329/3 Assignment Gradebook ORION Downloadable eTextbook ent CALCULA TOR FULL SCREEN PRINTER VERSİON 'BACK Exercise 21A-7 b-e Macinski Leasing Company leases a new machine to Sharrer Corporation. The machine has a cost of $70,000 and fair value orssoo. under the hea、onsolepe contract, Sharrer will receive title to the machine at the end of the lease. The machine has a 3-year useful life and no residual value. The lease was s 2017. Macinskí expects to earn an 8%...