On July 1, 2022, City of Rosebud entered into a lease agreement for its education department to use office space for a period of 5 years. Under the terms of the lease, Tiktoken will make annual payments of $60,000 on July 1^st of each year with the first payment due at the lease signing. which includes interest at a rate of 4.5% APR. Rosebud will not obtain ownership of the warehouse.

a) Determine the value of the lease at its inception using either a financial calculator OR Excel. Provide the financial calculator inputs OR the Excel formula to support your answer.

Value of the Lease at its Inception

Financial Calculator:

N	I/Y	PV	PMT	FV	MODE

Excel Formula:

b) On July 1, 2021, the City of Rosebud recognized the lease agreement. (4 points)

Recorded in:					GOVERNMENT-WIDE F/S
Date	Account Names		Debit	Credit	Date	Account Names	Debit	Credit

c) On July 1, 2021, the City of Rosebud made the first lease payment of $60,000.

Recorded in:					GOVERNMENT-WIDE F/S
Date	Account Names		Debit	Credit	Date	Account Names	Debit	Credit

2. Complete the following lease liability amortization schedule for the first two lease payments.

Month	Interest Expense	Cash Paid for Interest	Premium Amortization	Carrying Value of Bonds
7/1/2021
7/1/2021
7/1/2022 Calculations
Amounts

3. On June 30, 2022, the City of Rosebud made the required adjusting entries for interest on the lease and the amortization of the intangible asset.

Recorded in:					GOVERNMENT-WIDE F/S
Date	Account Names		Debit	Credit	Date	Account Names	Debit	Credit