Question
. On Jan 1, 2014 FTS Shoes, signed a 3-year lease agreement for new equipment. The lease required FTS to make annual payments of $54,000
. On Jan 1, 2014 FTS Shoes, signed a 3-year lease agreement for new equipment. The lease required FTS to make annual payments of $54,000 commencing Jan 1, 2014. Interest rate 3%. (7 marks)
- Journalize the entries required by FTS for each year of lease.
- Show your calculations on the next page
- Provide the lease liability Ledger for FTS on the next page.
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TURN OVER AND SHOW YOUR CALCUATIONS AND THE LIABILITY LEDGER
b) Show your calculations in this area.
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- Complete the Lease Liability Ledger
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TURN OVER AND ANSWER QUESTIONS TWO AND THREE
Q2. EXPLAIN why decision to require capitalization of leases has been controversial (2 Marks)
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Q3. EXPLAIN your view on the matter (1 mark)
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Quality And GMP Auditing Clear And Simple
Authors: James L. Vesper
1st Edition
0367400901, 978-0367400903
