A B D E F G H L M N O 3 4 5 6 7 8 Ayayai Inc. entered into a five-year lease of equipment from Matusek Inc on July 1, 2021. The equipment has an estimated economic life of eight years and fair value of $255,000. The present value of the lease payments amounts to $219,918. The lease does not have a bargain purchase option and ownership does not transfer to Ayayai at the end of the lease. 9 Using the above WileyPlus question please enter the appropriate information from the question into the appropriate boxes below: 10 Data from the Wiley Plus Assignment Question #3 11 12 Date of the lease July 1, 2021 13 All items in the parts below MUST be cell-referenced to your data to the left. Use Excel 14 Fair value of equipment formulas for all amounts including dates. 15 16 Present value of lease payments 17 18 Term of the lease (in years) 19 20 Interest rate (not provided) 8.00% 21 22 a. Calculate the amount of the lease payments for each of the 5 years assuming the company uses a rate of 8% and lease payments are due at the beginning of each period (careful to use the correct Type in your calculations!) 23 For purposes of this calculation enter o for the FV otherwise your lease schedule in part b will not work out. (2 marks) 24 25 26 27 28 b. Prepare a lease schedule for this lease arrangement using the lease payments calculated in a above. (4 marks) Lease Obligation Obligation after Student Declaration Mark Allocation Part 1 Instalment Notes Payable Part 2 Bonds Part 3 Lease Arrangement A G 28 b. B D E F Prepare a lease schedule for this lease arrangement using the lease payments calculated in a above. (4 marks) Lease Obligation Obligation after Date Lease Payment Interest Reduction payment 29 30 31 32 All items in this schedule MUST be cell-referenced to your data above. Use Excel formulas for all amounts including dates. 33 34 35 Prepare all the journal entries to record the lease obligation and first payment on July 1, 2021 (4 marks) using IFRS rules. Date Account Name Debit Credit 36 37 38 c. 39 40 41 42 43 44 45 46 d. 47 48 49 50 51 52 Prepare the required journal entries at June 30, 2021 (the company's year end) and the July 1, 2022 lease payment using IFRS rules. (Assume straightline depreciation on the equipment under lease) (7 marks) Date Account Name Debit Credit A H B C D E F G Prepare the required journal entries at June 30, 2021 (the company's year end) and the July 1, 2022 lease payment using IFRS rules. (Assume straightline depreciation on the equipment under lease) (7 marks) Date Account Name Debit Credit 46 d. 47 48 49 50 51 52 53 54 55 56 57 58 59 60 Discuss how the company would account for this lease if the company followed ASPE. Explain your answer using the rules discussed in our lectures (4 maks) 61 e. 62 63 64 65 66 67 68 69 70 f. 71 72 73 74 Prepare the company's partial balance sheet (liability section ONLY) at June 30, 2021.(4 marks) Company Name Partial Balance Sheet June 30, 2021 D14 x fi A B D E 65 66 67 68 Prepare the company's partial balance sheet (liability section ONLY) at June 30, 2021.(4 marks) Company Name Partial Balance Sheet June 30, 2021 69 70 f. 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 07
