Problem 10-11AC Accounting for finance leose LO C3 The following information applies to the questions displayed belowJ On January 1. Rogers (lessee) signs a three-year lease for machinery that is accounted for as a finance lease The lease requires three $24.053 lease payments (the first at the beginning of the lease and the remaining two at December 31 of Year 1 and Year 2) The present value of the three annual lease payments is $68.300, using a 5760% interest rate. The lease payment schedule follows. Problem 10-11AC Port 1 1. Prepare the January 1 joumal entry at the start of the lease to record any asset or liability. Journal entry worksheet Record the joumal entry for any asset or fiability at the start of the lease. Riotes Enter Gehati before credits Requlred Information Problem 10-11AC Accounting for finance lease LO C3 [The following information applies to the questions displayed below] On January 1. Rogers (lessee) signs a three-year lease for machinery that is accounted for as a finance lease. The lease requires three $24,053 lease payments (the first at the beginning of the lease and the remaining two at December 31 of Year 1 and Year 21. The present value of the three annual lease payments is $68,300, using a 5.760% interest rate. The lease payment schedule follows. Problem 10-11AC Part 2 2. Prepare the January 1 joumal entry to record the first $24,053 cash lease payment Journal entry worksheet Problem 10-11AC Accounting for finence leose LO C3 [The following information apples to the questions displeyed beiow] On January 1, Rogers (lessee) signs a three-year lease for machinery that is accounted for as a finance lease. The lease requires three $24.053 lease payments (the first at the beginning of the lease and the remaining two at December 31 of Year 1 and Year 2). The present value of the three annubl lease payments is $68.300, using a 5.760% interest rate. The lease payment schedule follows Problem 10-11AC Part 3 3. Prepare the December 31 joumbl entry to record straight-line amortization with zero salvage value at the end of (a) Year 1, (b) Year 2 . and (c) Year 3. Journal entry worksheet Record amortization of right-of use asset at December 31 of the first yeac Note: Finker debils belore arodien. Problem 10-11AC Accounting for finance lease LO C3 [The following information applies to the questions olisplayed below. On January 1. Rogers (lessee) signs a threeyear lease for machinery that is accounted for as a finance lease. The lease requires three $24.053 lease payments (the first ot the beginning of the lease and the remaining two at December 31 of Year 1 and Year 2). The present value of the three annual lease payments is $68.300, using a 5.760% interest rate. The lease payment schedule follows roblem 10-11AC Part 3 Prepare the December 31 journal entry to record straight-line amontization with zero salvage value at the end of (o) Year 1 , (b) Year 2. d (c) Year 3 . Journal entry worksheet 3 Record amortization of right-of use asset at December 31 of the second year. Nobez Enicr debits berort credits. Problem 10-11AC Accounting for finance lease LO C3 [The following information applies to the questions displayed below] On January 1. Rogers (lessee) signs a three-year lease for machinery that is accounted for as a finance lease. The lease requires three $24,053 lease payments (the first at the beginning of the lease and the remaining two at December 31 of Year 1 and Year 2) The present value of the three annual lease payments is $68,300, using a 5.760% interest rate. The lease payment schedule follows. roblem 10-11AC Part 3 Prepare the December 31 journal entry to record straight-line amortization with zero salvage value at the end of (a) Year 1 , (b) Year 2 (c) Year 3. Journal entry worksheet Record amortization of right-of use asset at December 31 of the third year: Noter Enter debits before credits. Problem 10-11AC Accounting for finance lease LO C3 [The following information applies to the questions displayed below] On January 1, Rogers (lessee) signs a three-year lease for machinery that is accounted for as a finance lease. The lease requires three $24,053 lease payments (the first at the beginning of the lease and the remaining two at December 31 of Year 1 and Year 2 . The present value of the three annual lease payments is $68,300, using a 5760% interest rate. The lease payment schedule follows. Problem 10-11AC Pert 4 4. Prepare the December 31 journai entry to record the $24,053 cash lease payment at the end of (a) Year 1 and (b) Year 2 Journal entry worksheet Record lease paryment on December 31 of the first year. Natet Eoter aebils before credits Problem 10-11AC Accounting for finance lease LO C3 [The following information applies to the questions displayed below] On January 1, Rogers (lessee) sighs a three-year lease for machinery that is accounted for as a finance lease. The lease requires three $24.053 lease payments (the first at the beginning of the lease and the remaining two at December 31 of Year 1 and Year 24. The present value of the three annual lease payments is $68,300, using a 5.760% interest rate. The lease payment schedule follows roblem 10-11AC Part 4 Prepare the December 31 journal entry to record the $24,053 cash lease payment at the end of (o) Year 1 and (b) Year 2 Journal entry worksheet Record lease payment on December 31 of the second year. Note: Enter debats before credits
