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Can someone explain to me how the numbers 483,00, 76,130... in the opening balance section of the table came about? SBW Goalposts Ltd leases a
Can someone explain to me how the numbers 483,00, 76,130... in the opening balance section of the table came about?
SBW Goalposts Ltd leases a truck from the NZRU Bank so that it can deliver goalposts to its customers on 1 July 2015. Lease payments of $23,000 are required annually in advance for 5 years (payable 30 June), and a residual payment of $6,592 is required. The implicit interest rate in the lease is 10% p.a. The truck has a useful life of 10 years with a salvage value of $10,000. Required Record the necessary journal entries for SBW Goalposts on the following dates 1. 1 July 2015 2. 30 June 2016 3. 30 June 2020 Interest portion Year Opening Balance Principal Portion Ending Balance Lease Payment 0 23000 23000 X-23000 1 X-23000 23000 0.1x-2300 25300-0.1x 1.1x-48300 2 1.1x-48300 23000 0.11x-4830 27830-0.11x 1.21x-76130 3 1.21x-76130 23000 0.121x-7613 30613-0.121x 1.331x-106743 4 1.331x-106743 23000 0.1331x-10674.3 33674.3-0.1331x 1.4641x-140417.3 5 1.4641x-140417.3 6592 0.14641x-14041.73 20633.73-0.14641x0Step by Step Solution
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