Answer all the question please

Chapter 21 Content Learning Worksheet - Answer the question and provide the page number of your solution. 1. _______Name two main classifications of leases and define them. 2. _______Circle one for each: Lessee = Owner or User Lessor = Owner or User 3. ______On the books of a lessee: a) What are the 5 tests for a finance lease? b) How many of the 5 tests must be met? c) What is the one additional criteria (not one of the 5 tests) that a finance lease must meet at all times to be considered a finance lease? d) If a lease does not meet any of the 5 tests, what kind of lease is it? 4. _______Define a Bargain Purchase Option: 5. _______Define the Lease term test: 6. _______The Present Value test (aka: 90% test) is met if the Present Value of the lease payments is greater than or equal to 90% of the fair value of the asset. What 4 considerations go into the determination of the lease payments? 7. _______What are Executory costs?

8. ______Using the Financing Lease Method for a Lessee, what accounts are debited and credited at the following points in time: a) Lease Creation: b) Lease payment: c) Year-end Interest expense: d) Year-end amortization of lease: 9. _______What is the journal entry(ies) required for the Operating Lease Method for a Lessee? a) Lease Creation: b) Lease payment: c) Year-end Interest expense and amortization of lease: 10. ______On the books of a lessor: a) What are the 5 tests for a finance lease? b) How many of the 5 tests must be met? c) What is the one additional criteria (not one of the 5 tests) that a finance lease must meet at all times to be considered a finance lease? d) What is the label for a Lessors finance type lease? e) If a lease does not meet any of the 5 tests, what kind of lease is it?

11. ______Using the Financing Lease Method for a Lessor, what accounts are debited and credited at the following points in time: a) Lease Creation: b) Lease payment: c) Year-end Interest revenue: 12. _______What is the journal entry(ies) required for the Operating Lease Method for a Lessor? a) Lease payment: b) Year-end adjusting entry for Unearned revenue: c) Year-end Depreciation: 13. _______In regards to a Lessees annual amortization, what time frame is the Right of Use asset amortized over if there is a Bargain Purchase Option?