part 6
No. |
date |
General journal |
debit |
Credit |
1 |
December 31, 2018 |
Leased equipment ((11000-1000)*3.53129)+(6000*0.70843) |
39564 |
|
Lease payable |
39564 |
|||
2 |
December 31, 2018 |
Lease payable |
10000 |
|
Prepaid maintenance expense |
1000 |
|||
Prepaid maintenance expense |
11000 |
|||
3 |
December 31, 2018 |
Lease receivable |
45114 |
|
Cost of goods sold (40000-((15000-11000)*0.68301)) |
37268 |
|||
Sales revenue (((11000-1000)*3.48685)+(11000*0.68301)) |
42382 |
|||
Inventory of equipment |
40000 |
|||
4 |
December 31, 2018 |
Cash |
11000 |
|
Maintenance fees payable |
1000 |
|||
Lease receivable |
10000 |
present value of $1: n=4, i=9% = 0.70843
present value of an annuity due of $1: n=4, i=9% = 3.53129
present value of $1: n=4, i=10% = 0.68301
present value of an annuity due of $1: n=4, i=10% = 3.48685
Part 7
Dec. 31 |
payments |
Effective interest (9%) |
Decrease in balance |
Outstanding balance |
39564 |
||||
2018 |
10000 |
10000 |
29564 |
|
2019 |
10000 |
2661 |
7339 |
22225 |
2020 |
10000 |
2000 |
8000 |
14225 |
2021 |
10000 |
1280 |
8720 |
5505 |
2022 |
6000 |
495 |
5505 |
0 |
Payments = 11000-1000 = 10000
Effective interest = previous outstanding balance *9%
Decrease in balance = payments – effective interest
Outstanding balance = previous outstanding balance – decrease in balance
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