Lessee Company entered into a lease of a building on January 1, 2020 with the ff terms: Annual rental payable at the end of each year Lease term Useful life of building Implicit interest rate FV on an ordinary annuity of 1 at 9% for 5 periods The lease contained an option for the lessee to extend the lease 5 years further. At the commencement date, the exercise of the extension option is not reasonably certain. After 3 years on January 1, 2023, the lessee decided to extend the lease for 5 years. New annual rental payable at the end of each year New implicit interest rate PV of an ordinary annuity of 1 at 12% for 5 periods PV of 1 at 12% for 5 periods PV of an ordinary annuity of 1 at 12% for 2 periods Required: 1) Prepare a complete amortization table for the lease liability. 2) Prepare journal entries for 2020 3) Compute for the balance of lease liability on January 1, 2023 4) Prepare journal entries for 2023 On January 1, 2020, Lessee Company entered into a lease for floor space with the following information: Floor space Annual rental payable at the end of each year Lease term Implicit rate in the lease PV of an ordinary annuity of 1 for 10% at 5 periods On January 1, 2022, Lessee Company and the lessor agreed to amend the original terms of the lease with the ff info: Floor space Annual rental payable at the end of each year Implicit rate in the lease PV of an ordinary annuity of 1 for 10% at 3 periods Required: 1) Prepare complete amortization table for the lease liability 2) Prepare journal entries for 2020 3) Compute for the termination gain(loss) on January 1, 2022 4) Compute for the balance of Lease Liability on January 1, 2022 5) Prepare journal entries for 2022 On January 1, 2020, Lessee Company leased a machine with the ff info: Annual rental payable at the end of each year Lease term Implicit rate in the lease PV of an ordinary annuity of 1 at 6% at 5 periods On January 1, 2022, Lessee Company and the lessor agreed to amend the original terms of the lease by reducing the annual lease payment by P20,000 and increasing the implicit interest rate to 8%. The PV of an ordinary annuity of 1 at 8% for 3 periods is 2.5771. Required: 1) Prepare complete amortization table for the lease liability 2) Prepare journal entries for 2020 3) Compute for the balance of Lease Liability on January 1, 2022 4) Prepare journal entries for 2022 Lessee Company entered into a lease of a building on January 1, 2020 with the ff terms: Annual rental payable at the end of each year Lease term Useful life of building Implicit interest rate FV on an ordinary annuity of 1 at 9% for 5 periods The lease contained an option for the lessee to extend the lease 5 years further. At the commencement date, the exercise of the extension option is not reasonably certain. After 3 years on January 1, 2023, the lessee decided to extend the lease for 5 years. New annual rental payable at the end of each year New implicit interest rate PV of an ordinary annuity of 1 at 12% for 5 periods PV of 1 at 12% for 5 periods PV of an ordinary annuity of 1 at 12% for 2 periods Required: 1) Prepare a complete amortization table for the lease liability. 2) Prepare journal entries for 2020 3) Compute for the balance of lease liability on January 1, 2023 4) Prepare journal entries for 2023 On January 1, 2020, Lessee Company entered into a lease for floor space with the following information: Floor space Annual rental payable at the end of each year Lease term Implicit rate in the lease PV of an ordinary annuity of 1 for 10% at 5 periods On January 1, 2022, Lessee Company and the lessor agreed to amend the original terms of the lease with the ff info: Floor space Annual rental payable at the end of each year Implicit rate in the lease PV of an ordinary annuity of 1 for 10% at 3 periods Required: 1) Prepare complete amortization table for the lease liability 2) Prepare journal entries for 2020 3) Compute for the termination gain(loss) on January 1, 2022 4) Compute for the balance of Lease Liability on January 1, 2022 5) Prepare journal entries for 2022 On January 1, 2020, Lessee Company leased a machine with the ff info: Annual rental payable at the end of each year Lease term Implicit rate in the lease PV of an ordinary annuity of 1 at 6% at 5 periods On January 1, 2022, Lessee Company and the lessor agreed to amend the original terms of the lease by reducing the annual lease payment by P20,000 and increasing the implicit interest rate to 8%. The PV of an ordinary annuity of 1 at 8% for 3 periods is 2.5771. Required: 1) Prepare complete amortization table for the lease liability 2) Prepare journal entries for 2020 3) Compute for the balance of Lease Liability on January 1, 2022 4) Prepare journal entries for 2022