Leases Q2

A company leased two assets for use in its operations: 1. A computer costing P10000 at an annual rental of P2600 payable in areas. 2. A fax machine costing P6 000 at an annual rental of P2 500also payable in arrears. The lease period for both assets is 5 years. The computer is leased under a finance lease whereas the fax machine is leased under an operating lease. The finance charges relating to the finance lease are allocated over the lease period using the sum of digits method while fixed assets are depreciated using the straight line method. Required: To show how the two leases would be presented in the financial statements of this company for the entire lease period