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On January 1 , Weber, Inc., entered into two lease contracts. The first lease contract was a six - year lease for computer equipment with
On January Weber, Inc., entered into two lease contracts. The first lease contract was a sixyear lease for computer equipment with $ annual lease payments due at the end of each year. Weber took
possession of the equipment on January The second lease contract was a sixmonth lease, beginning January for warehouse storage space with $ monthly lease payments due the first of each month.
Weber made the first month's payment on January The present value of the lease payments under the first contract is $ The present value of the lease payments under the second contract is $
a Assume that the first lease contract is a finance lease. Prepare a financial statement effects template to show the effects of the entry on January
b Assume the second lease contract is an operating lease. Prepare a financial statement effects template to show the effects of the entry on January Note: The company is not applying the shortterm
lease election.
Note: Use negative signs with your answers, when appropriate.
Note: Select NA as your answer if a part of the accounting equation is not affected.
Note: Round answers to the nearest whole dollar.
a Finance Lease:
b Operating Lease:
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