[41] How should WIN classify the lease? O a. A capital lease because the lease term is less than the useful life of the asset. Ob. A capital lease because the contract terms meet one of the criteria specified by ASPE. O c. An operating lease because the ownership rights are not acquired by the lessee. O d. An operating lease because NOD is not applying IFRS 16. O e. A capital lease because the lease term does not meet the short lease term or low value exemptions provided for under IFRS-16. [42] The journal entry prepared by WIN to record the lease contract on January 1, 2019 would be O a. DEBIT-Right of Use Assets [$260,000); CREDIT-Obligation Under Capital Lease ($260,000). O b. DEBIT-Right of Use Assets [$250,090]; CREDIT-Obligation Under Capital Lease ($250,090). c. DEBIT-Right of Use Assets [$250,090]; CREDIT-Cash ($250,090). O d. DEBIT-Right of Use Assets [$239,147]; CREDIT-Obligation Under Capital Lease ($239,147]. Oe. DEBIT-Right of Use Assets [$330,000); CREDIT-Obligation Under Capital Lease ($330,000). [43] The journal entry prepared by WIN to record any other transaction related to the lease contract on January 1, 2019. O a. DEBIT-Cash ($33,000); CREDIT-Obligation Under Capital Lease ($33,000). O b. DEBIT-Obligation Under Capital Lease ($33,000); CREDIT-Cash ($33,000). O C. DEBIT-Executory Costs-Capital Lease [$33,000]; CREDIT-Cash [$33,000). O d. DEBIT-Interest Expense [$33,000); CREDIT-Cash [$33,000). Oe. No journal entry required as there was no other transaction on January 1, 2019. [41] How should WIN classify the lease? O a. A capital lease because the lease term is less than the useful life of the asset. Ob. A capital lease because the contract terms meet one of the criteria specified by ASPE. O c. An operating lease because the ownership rights are not acquired by the lessee. O d. An operating lease because NOD is not applying IFRS 16. O e. A capital lease because the lease term does not meet the short lease term or low value exemptions provided for under IFRS-16. [42] The journal entry prepared by WIN to record the lease contract on January 1, 2019 would be O a. DEBIT-Right of Use Assets [$260,000); CREDIT-Obligation Under Capital Lease ($260,000). O b. DEBIT-Right of Use Assets [$250,090]; CREDIT-Obligation Under Capital Lease ($250,090). c. DEBIT-Right of Use Assets [$250,090]; CREDIT-Cash ($250,090). O d. DEBIT-Right of Use Assets [$239,147]; CREDIT-Obligation Under Capital Lease ($239,147]. Oe. DEBIT-Right of Use Assets [$330,000); CREDIT-Obligation Under Capital Lease ($330,000). [43] The journal entry prepared by WIN to record any other transaction related to the lease contract on January 1, 2019. O a. DEBIT-Cash ($33,000); CREDIT-Obligation Under Capital Lease ($33,000). O b. DEBIT-Obligation Under Capital Lease ($33,000); CREDIT-Cash ($33,000). O C. DEBIT-Executory Costs-Capital Lease [$33,000]; CREDIT-Cash [$33,000). O d. DEBIT-Interest Expense [$33,000); CREDIT-Cash [$33,000). Oe. No journal entry required as there was no other transaction on January 1, 2019
