Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Cathen Aggreguses Co entered into a three-year contract to obtain three motor vehicles on 1 January 2021. The coutraet ment the IIRS 16 criteria to
Cathen Aggreguses Co entered into a three-year contract to obtain three motor vehicles on 1 January 2021. The coutraet ment the IIRS 16 criteria to be classified as a lease and the initial measurement of the right-oftuse asset was $54 wall The ugreement stanes than Carbon Agegregates Co will pay a deposit of $9,000 on 1 January 2021 , and two anduial instelimetus of $24,000 on 31 December 2021, 2022 and a final instalment of $20,391 on 31 Dertumber 2:23. O-merstip will pass 10 Carbon Aggregates C0 at the end of the lease term. Interest is to be cellecitaned at 25% on the halance outstanding on 1 Jamuary each year and paid on 31 December each year. The depresiation policy of Carbon Aggregates Co is to depreciate the right-of-use asset arising from the lease of the rehicles oner a four year period using the straight line method. Required Show the entries in the sumement of protil or lass and statement of financial position for the years 2021,2022,2023. This is the only lease mansaction andertaken by this company. Calculations to the nearest $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started