Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Need help with 2 and 3. You know, we heard in our accounting class today that a few years ago, there were advantages to structuring
Need help with 2 and 3.
"You know, we heard in our accounting class today that a few years ago, there were advantages to structuring lease arrangements as operating leases," your study partner said unexpectedly. "Now I'm wondering if that's changing things for companies that lease assets." Not happy with having to suddenly change your train of thought, but now curious, you open a new tab on your laptop and locate the following disclosure note in Microsoft's 2020 financial statements. We have operating and finance leases for datacenters, corporate offices, reasearch and development facilities, retail stores, and certain equipment. Our leases have remaining lease terms of 1 year to 20 years, some of which include options to extend the leases for up to 5 years, and some of which include options to terminate the leases within 1 year. The components of lease expense were as follows: Supplemental cash flow information related to leases was as follows: Maturities of lease liabilities were as follows: Required: 1. What do you notice about the trends in operating versus finance leases for Microsoft? 2. Prepare a journal entry that summarizes the lease payments for Microsoft's finance leases during 2020. 3. Prepare a journal entry that summarizes the amortization of the right-of-use assets for Microsoft's finance leases during 2020. Complete this question by entering your answers in the tabs below. Prepare a journal entry that summarizes the lease payments for Microsoft's finance leases during 2020. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,00,000 should be entered as 10 )Step 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