I have a question. Please help! I am having issues with lease amortization schedules and my numbers
Question:
I have a question. Please help! I am having issues with lease amortization schedules and my numbers are not coming out right. Please help!! Please see below:
Based off of the information below, I need help in preparing a lease amortization schedule for a 5-year lease term.
I also need help in preparing the journal entries on the lessee's books to reflect the signing of the lease agreement and to record the payments and expenses related to this lease for the years 2019 and 2020.
This is a non-cancelable lease agreement
Commencement date: May 1, 2019
Annual lease payment due at the beginning of each year, beginning with May 1, 2019: $20,471.94
Bargain purchase option price at end of lease term: $4,000.00
Lease term: 5 years
Economic life of leased equipment: 10 years
Lessor's cost: $65,000.00
Fair value of asset at May 1, 2019: $91,000.00
Lessor's implicit rate: 8%
Lessee's incremental borrowing rate: 8%
Thank you!