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please help On January 1, 2017, Dwyer Company leases space for a donut shop. The lease is for five years with payments to be made
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On January 1, 2017, Dwyer Company leases space for a donut shop. The lease is for five years with payments to be made at the beginning of each year. The lease calls for Dwyer to pay $10,000 on January 1, 2017, $11,000 on January 1, 2018, $12,500 on January 1, 2019, $14,000 on January 1, 2020, and $16,000 on January 1, 2021. Dwyer has adopted early ASC 842 and has appropriately classified the lease as an operating lease. Dwyer has a calendar reporting year and an incremental borrowing rate of 8%. Dwyer uses straight-line depreciation for its long-lived assets. Ignore current and noncurrrent classification for this exercise. Use tables (PV of 1, PVAD of 1, and PVOA of 1) (Use the appropriate factor(s) from the tables provided.) Required: 1. What journal entries should Dwyer make at January 1, 2017, to record the effects of the lease? 2. Prepare Dwyer's amortization table for the leased shop. 3. What journal entries would Dwyer make on December 31, 2017, to record the effects of the lease? 4. What is the balance of the right-of-use asset and the lease obligation on January 1, 2019, after Dwyer makes the rent payment? 5. What would be the balance of the right-of-use asset and the lease obligation on January 1, 2019, after Dwyer makes the rent payment under IFRS 16? Complete this question by entering your answers in the tabs below. Req 1 Req2 Req3 Req 4 and 5 What journal entries should Dwyer make at January 1, 2017, to record the effects of the lease? (If no entry is required for a particular transaction, select "No journal entry required" in the first account field. Round your answers to 2 decimal places.) View transaction list Journal entry worksheet Prepare the entry for the commencement of the lease at the start of the year. Note: Enter debits before credits. Date General Journal Debit Credit 01/01/2017 View transaction list Journal entry worksheet Req 1 Reg 1 Reg 2 Reg 2 Req 3 Req3 Req 4 and 5 Reg 4 and 5 What journal entries would Dwyer make on December 31, 2017, to record the effects of the lease? (Round your answers to 2 decimal places.) View transaction list Journal entry worksheet Prepare the entry to record the increase in liability due to interest. Note: Enter debits before credits. Date General Journal Debit Credit 12/31/2017 Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Req3 Req 4 and 5 What journal entries would Dwyer make on December 31, 2017, to record the effects of the lease? (Round your answers to 2 decimal places.) View transaction list Journal entry worksheet Prepare the entry to record the expensing of the lease obligation. Note: Enter debits before credits. General Journal Debit Credit Date 12/31/2017 Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Req 3 Req 4 and 5 4. What is the balance of the right-of-use asset and the lease obligation on January 1, 2019, after Dwyer makes the rent payment? 5. What would be the balance of the right-of-use asset and the lease obligation on January 1, 2019, after Dwyer makes the rent payment under IFRS 16? (Round your answers to 2 decimal places. Negative amounts should be indicated by a minus sign.) Show less 4a. Balance in right-of-use ASC 842 4b. Balance in lease obligation ASC 842 5a. Balance in right-of-use - IFRS 5b. Balance in lease obligation - IFRSStep by Step Solution
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