P21-7

P21-8

02,4) ipment to Jensen The form of the 6304 6.B01 7. OR 5919 5519 15112 330513 11. 3115 esse- L ot Entries, Finance Lease with a Guaranteed Residual Value mento Jensen Corporation on January 1, 2017. The following information relates to the lease agreement Gless Leasing Company agro of the lenses 7 years with no onewal option, and the machinery has an estimated comic life of your cost of the machinery 5525.000, and the fair value of the asset on January 1, 2017, 5200.000 the end of the lease berm, the asselfevents to the hos t 000 jensen estimates at the expected residual value at the end of the lease wi l oli sed equipmen on a straight-line basis The lease agreement require equal annual tal payments, beginning on January 1, 2017 The collectibility of the lease payments is probable Claus desires a Tate of return on its investments Inson's c u borowing rates and the lo'simpel rate is unknown. Instructions (Assume the accounting period ends on December 31.) (al Discuss the nature of this lease for both the lessee and the lesso (b) Calculate the amount of the annual rental payment required id Compute the value of the lease liability to the lessee. (d) Prepare the journal entries Jensen would make in 2017 and 2018 related to the lease arrangement. al Prepare the joumal entries Glaus would make in 2017 and 2018 rvlated to the lease arrangement. Suppose Jensen expects the residual value at the snd of the lease berm to be $10,000 but still guarantees a residual of $50,000. Compute the value of the lease liability at lease commencement P21-7 (L02,4) (Lessor Computations and Entries, Sales-Type Lease with Guaranteed Residual Value) Amirante Inc. manufactures an X-ray machine with an estimated life of 12 years and leases it to Chambers Medical Center for a period of 10 years. The normal selling price of the machine is $195,678, and its guaranteed residual value at the end of the non-cancelable lease term is estimated to be $15,000. The hospital will pay rents of $60,000 at the beginning of each year Amirante incurred costs of $300,000 in manufacturing the machine and $14,000 in legal fees directly related to the signing of the lease. Amirante has determined that the collectibility of the lease payments is probable and that the implicit interest rate is 5% Instructions (a) Discuss the nature of this lease in relation to the lessor and compule the amount of each of the following items. (1) Lease receivable at commencement of the lease. (2) Sales price. (3) Cost of sales. (b) Prepare a 10-year lease amortization schedule for Amirante, the lessor. Id Prepare all of the lessor's journal entries for the first year. P21- L02,4) (Lessee Computations and Entries, Finance Lease with Guaranteed Residual Value Assume the same data in 221.7 and that Chambers Medical Center has an incremental borrowing rate of 5% and an expected residual value at the end of the least of 510.000 Instructions Discuss the nature of this lease in relation to the lessee, and compute the amount of the initial lease liability (b) Prepare a 10-year lease amortization schedule. Id Prepare all of the lessee's journal entries for the first year. (d) Suppon Chambers Medical Center incurred 57,000 of document preparation costs her the execution of the lesse How would the initial measurement of the lume liability and right-of-use et be affected? 02,4) ipment to Jensen The form of the 6304 6.B01 7. OR 5919 5519 15112 330513 11. 3115 esse- L ot Entries, Finance Lease with a Guaranteed Residual Value mento Jensen Corporation on January 1, 2017. The following information relates to the lease agreement Gless Leasing Company agro of the lenses 7 years with no onewal option, and the machinery has an estimated comic life of your cost of the machinery 5525.000, and the fair value of the asset on January 1, 2017, 5200.000 the end of the lease berm, the asselfevents to the hos t 000 jensen estimates at the expected residual value at the end of the lease wi l oli sed equipmen on a straight-line basis The lease agreement require equal annual tal payments, beginning on January 1, 2017 The collectibility of the lease payments is probable Claus desires a Tate of return on its investments Inson's c u borowing rates and the lo'simpel rate is unknown. Instructions (Assume the accounting period ends on December 31.) (al Discuss the nature of this lease for both the lessee and the lesso (b) Calculate the amount of the annual rental payment required id Compute the value of the lease liability to the lessee. (d) Prepare the journal entries Jensen would make in 2017 and 2018 related to the lease arrangement. al Prepare the joumal entries Glaus would make in 2017 and 2018 rvlated to the lease arrangement. Suppose Jensen expects the residual value at the snd of the lease berm to be $10,000 but still guarantees a residual of $50,000. Compute the value of the lease liability at lease commencement P21-7 (L02,4) (Lessor Computations and Entries, Sales-Type Lease with Guaranteed Residual Value) Amirante Inc. manufactures an X-ray machine with an estimated life of 12 years and leases it to Chambers Medical Center for a period of 10 years. The normal selling price of the machine is $195,678, and its guaranteed residual value at the end of the non-cancelable lease term is estimated to be $15,000. The hospital will pay rents of $60,000 at the beginning of each year Amirante incurred costs of $300,000 in manufacturing the machine and $14,000 in legal fees directly related to the signing of the lease. Amirante has determined that the collectibility of the lease payments is probable and that the implicit interest rate is 5% Instructions (a) Discuss the nature of this lease in relation to the lessor and compule the amount of each of the following items. (1) Lease receivable at commencement of the lease. (2) Sales price. (3) Cost of sales. (b) Prepare a 10-year lease amortization schedule for Amirante, the lessor. Id Prepare all of the lessor's journal entries for the first year. P21- L02,4) (Lessee Computations and Entries, Finance Lease with Guaranteed Residual Value Assume the same data in 221.7 and that Chambers Medical Center has an incremental borrowing rate of 5% and an expected residual value at the end of the least of 510.000 Instructions Discuss the nature of this lease in relation to the lessee, and compute the amount of the initial lease liability (b) Prepare a 10-year lease amortization schedule. Id Prepare all of the lessee's journal entries for the first year. (d) Suppon Chambers Medical Center incurred 57,000 of document preparation costs her the execution of the lesse How would the initial measurement of the lume liability and right-of-use et be affected