Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I need help in all four parts and have to do this in excel so an excel format will be highly appreciated. Thank you so
I need help in all four parts and have to do this in excel so an excel format will be highly appreciated.
Thank you so much!!!
P3.1 Langevin Ltd., which has a calendar year end, entered into an equipment lease on June 1, 2020, with GH Financing Limited. The lease term is two years and requires payments of $3,000 at the end of each month beginning September 30. The stated rate of interest in the lease is 6%. As an incentive for entering into the contract, GH has agreed to forgive the first three payments under the lease (June, July, and August). Instructions a. What effect, if any, does the forgiveness of the first three payments have on the measurement of the lease transaction on June 1, 2020? b. Calculate the amount that Langevin should record for the lease obligation on June 1, 2020. Use a financial calculator or Excel functions in your calculation. Hint: Calculate the present value of the monthly payments as at September 1, 2020, and then discount this amount to June a 1, 2020. c. What is the amount of the interest accrual that Langevin will record on June 30, 2020, for the lease obligation? d. Is there any measurement uncertainty that needs disclosure in the notes to Langevin's financial statements? Hint: Assume that GH is confident of collecting the lease payments under the lease contractStep 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