Exam A ccel akaur92 88. Saved v Search (Option + Q le Home Insert Draw Page Layout Formulas Data Review View Help Editing Calibri 12 A Ar 25 General Thanks for using Office! We've made some updates to the privacy settings to give you more control. Your organization's admin allows you to use several cloud-backed services. Yo Settings. These optional coud-backed services are provided to you under the Microsoft Services Agreement. Lcom more fx B A B C D E F G H Question 1: Multiple-Choice (10 marks) REQUIRED: All multiple-choice answers must be completed in EXCEL. Select the best answer from the drop-down lists in the blue boxes provided below the question. Use the following information to answer questions 1 - 4: On June 1, 2021, Maya Ltd, leased a new piece of equipment to Caramilk Inc. under a six-year, non-cancellable contract. Both Maya and Caramilk use IFRS, have calendar year ends, and use the straight-line method to depreciate equipment (recorded only at year-end). The following information pertains to the lease: The lease term requires payments of $22,000 each June 1, beginning June 1, 2021. At the end of the lease term, the equipment will revert back to the Lessor, but is expected to have a residual value of $5,696, which Caramilk guarantees. The equipment's fair value on June 1, 2021 is $116,000 and its cost to Maya is $69,600. The equipment has an economic life of 7 years. Maya Ltd. set the annual rental to ensure a 7% rate of return. Caramilk's incremental borrowing rate is 8% and the lessor's implicit rate is known to the lessee The lessee is responsible for all executory costs. An amortization schedule for the first two payments was correctly prepared as follows: Date Principal Lease payment Interest Balance reduction Cover Sheet Q1 Q2 Q3 Q4 OS-DATA 05-REQUIRED 06 07 08 09 Drop-down Lists + Excellent D O 30 Date Hinc B 2021 MO 571/2002 5 22.000 5 32.000 116.000 DOO 750 10 CH. Without you. 2001 Act Title Dett Les mer 26 Ahmed Ceder 2169 116.000 Lapa 137636 21. 116.000 Colet 16.00 116.000 132.000 Lene Deter Sa 16000 216.000 06 Depo 7 NE 3 4 Q W E R T Y S 0 D F G Z V B # option command Excel 2. Owen wil Mediese Cars Carmen det Net We may record on December 31, 2021? Aco D Dad Aware ed RE WE Cameron Interno DE 3200 3.290 1.250 4. The entry made on 2007 and added with 01 03 04 9 07 08 09 Down 7 2 3 5 6 7 Q w N E R T - Y S D F G H N Z C V B 2 36 option command 61 59 (4). The entry made on June 1, 2027 (end of lease) includes which of the following: 60 A. A debit to cash for $22,000. B. A credit to lease payments receivable for $5,696. 62 C. A debit to lease payments receivable for $5,696. 63 D. A credit to cash for $5,696. 64 65 #4 Answer: Exam A ccel akaur92 88. Saved v Search (Option + Q le Home Insert Draw Page Layout Formulas Data Review View Help Editing Calibri 12 A Ar 25 General Thanks for using Office! We've made some updates to the privacy settings to give you more control. Your organization's admin allows you to use several cloud-backed services. Yo Settings. These optional coud-backed services are provided to you under the Microsoft Services Agreement. Lcom more fx B A B C D E F G H Question 1: Multiple-Choice (10 marks) REQUIRED: All multiple-choice answers must be completed in EXCEL. Select the best answer from the drop-down lists in the blue boxes provided below the question. Use the following information to answer questions 1 - 4: On June 1, 2021, Maya Ltd, leased a new piece of equipment to Caramilk Inc. under a six-year, non-cancellable contract. Both Maya and Caramilk use IFRS, have calendar year ends, and use the straight-line method to depreciate equipment (recorded only at year-end). The following information pertains to the lease: The lease term requires payments of $22,000 each June 1, beginning June 1, 2021. At the end of the lease term, the equipment will revert back to the Lessor, but is expected to have a residual value of $5,696, which Caramilk guarantees. The equipment's fair value on June 1, 2021 is $116,000 and its cost to Maya is $69,600. The equipment has an economic life of 7 years. Maya Ltd. set the annual rental to ensure a 7% rate of return. Caramilk's incremental borrowing rate is 8% and the lessor's implicit rate is known to the lessee The lessee is responsible for all executory costs. An amortization schedule for the first two payments was correctly prepared as follows: Date Principal Lease payment Interest Balance reduction Cover Sheet Q1 Q2 Q3 Q4 OS-DATA 05-REQUIRED 06 07 08 09 Drop-down Lists + Excellent D O 30 Date Hinc B 2021 MO 571/2002 5 22.000 5 32.000 116.000 DOO 750 10 CH. Without you. 2001 Act Title Dett Les mer 26 Ahmed Ceder 2169 116.000 Lapa 137636 21. 116.000 Colet 16.00 116.000 132.000 Lene Deter Sa 16000 216.000 06 Depo 7 NE 3 4 Q W E R T Y S 0 D F G Z V B # option command Excel 2. Owen wil Mediese Cars Carmen det Net We may record on December 31, 2021? Aco D Dad Aware ed RE WE Cameron Interno DE 3200 3.290 1.250 4. The entry made on 2007 and added with 01 03 04 9 07 08 09 Down 7 2 3 5 6 7 Q w N E R T - Y S D F G H N Z C V B 2 36 option command 61 59 (4). The entry made on June 1, 2027 (end of lease) includes which of the following: 60 A. A debit to cash for $22,000. B. A credit to lease payments receivable for $5,696. 62 C. A debit to lease payments receivable for $5,696. 63 D. A credit to cash for $5,696. 64 65 #4