Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I have this operating lease for shop equipment, It ended last year but I need to clear out balances how do I do that? It

I have this operating lease for shop equipment, It ended last year but I need to clear out balances how do I do that? It was full term lease, the lease just expired and now the balances need to be cleared, so what would those journal entries look like?

image text in transcribed

Office Equipment Lease Year 2 Balance $10,750.00 Rate 5.158% Term 3 years Payment $3,765.00 (given) Net Amortization of ROU Asset # of Pymt Payment Principal Interest Asset Year 2 adjustments Year 3 adjustments $0 1 Year 2: begin 2 Year 2: end 3 Year 3 $3,765 $3,765 $3,765 $3,765 $3,405 $3,580 Balance $10,750 $6,985 $3,580 ($0) $360 $185 $3,405 $3,580 $0 $7,345 $3,765 $3,765

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting An Integrated Statements Approach

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

2nd Edition

324312113, 978-0324312119