Argyle Ltd, signed a 36-month lease to rent a new computer for $190 per month. The fair value of the computer is $3,200. The lease will commence on 1 November 20X1 with payments beginning immediately. Assume that Argyle Ltd's IBR is 0.7% per month Argyle is unaware of the implicit rate in the lease. (PV of $1. PVA of $1, and PVAD of $1.) (Use appropriate factor(s) from the tables provided.) Required: 1-a. Is Argyle Ltd. able to account for this lease as a low-value lease? Yes No 1-b. What journal entry would be recorded for this lease? (if no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1-b. What journal entry would be recorded for this lease? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Pass journal entry for this lease. Note: Enter debits before credits. Transaction General Journal Debit Credit 2 a. Argyle Ltd. is able to find a used computer for $150 per month instead of having to pay $190 per month. The fair value of the asset in its current condition is $2,300 but when new, the computer costs slightly over $5,800. Is Argyle Ltd. able to account for this lease as a low-value lease? Yes No 2-b. What journal entry would be recorded for this lease? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to the nearest whole dollar amount.) View transaction list Journal entry worksheet Record the lease asset and lease liability. Journal entry worksheet Record the lease asset and lease liability. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Argyle Ltd, signed a 36-month lease to rent a new computer for $190 per month. The fair value of the computer is $3,200. The lease will commence on 1 November 20X1 with payments beginning immediately. Assume that Argyle Ltd's IBR is 0.7% per month Argyle is unaware of the implicit rate in the lease. (PV of $1. PVA of $1, and PVAD of $1.) (Use appropriate factor(s) from the tables provided.) Required: 1-a. Is Argyle Ltd. able to account for this lease as a low-value lease? Yes No 1-b. What journal entry would be recorded for this lease? (if no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1-b. What journal entry would be recorded for this lease? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Pass journal entry for this lease. Note: Enter debits before credits. Transaction General Journal Debit Credit 2 a. Argyle Ltd. is able to find a used computer for $150 per month instead of having to pay $190 per month. The fair value of the asset in its current condition is $2,300 but when new, the computer costs slightly over $5,800. Is Argyle Ltd. able to account for this lease as a low-value lease? Yes No 2-b. What journal entry would be recorded for this lease? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to the nearest whole dollar amount.) View transaction list Journal entry worksheet Record the lease asset and lease liability. Journal entry worksheet Record the lease asset and lease liability. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal
