Jaquar Mining and Manufacturing Company leases from Emory Leasing Company three machines under the following terms.

Question:

Jaquar Mining and Manufacturing Company leases from Emory Leasing Company three machines under the following terms.
• Machine 1: Lease period-10 years, beginning April 1, 2007; lease payment-$18,000 per year, payable in advance.
• Machine 2: Lease period-10 years, beginning July 1, 2011; lease payment-$30,000 per year, payable in advance.
• Machine 3: Lease period-15 years, beginning January 1, 2012; lease payment-$12,500 per year, payable in advance.
All of the leases are classified as operating leases.
Instructions:
Prepare the note to the 2013 that would be required to disclose the lease commitments of Jaquar Mining and Manufacturing Company. Jaquar uses the calendar year as its accounting period.
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...