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Problem 14-11AC Capital lease accounting LO C3 The following information applies to the questions displayed below.] Rogers Company signs a five-year capital lease with Packer
Problem 14-11AC Capital lease accounting LO C3 The following information applies to the questions displayed below.] Rogers Company signs a five-year capital lease with Packer Company for office equipment. The annual year-end lease payment is $26.000, and the interest rate is 9%. (Table B.1. Table B.2. Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided.) oblem 14-11AC Part 1 Complete the below table to calculate the present value of Rogers's five-year lease payments. Lease Payment Amount PV Factor Present value of lease payments Problem 14-11AC Part 2 2. Prepare the journal entry to record Rogers's capital lease at its inception View transaction list Journal entry worksheet Record the capital lease of office equipment. Note: Enter debits before credits. Transaction General Journal Debit Credit Problem 14-11AC Part 3 3. Complete a lease payment schedule for the five years of the lease with the following headings. Assume that the beginning balance of the lease liability is the present value of lease payments. Beginning Period Ending Date Interest on Reduction of Balance of Lease Liability Cash Lease Ending Balance of aceliability Lease Liability Payment Lease Year 1 Year 2 Year 3 Year 4 Year 5 Total Problem 14-11AC Part 4 4. Use straight-line depreciation and prepare the journal entry to depreciate the leased asset at the end of year 1. Assume zero salvage value and a five-year life for the office equipment. View transaction list Journal entry worksheet Record the annual depreciation expense on the office equipment at the end of year 1. Note: Enter debits before credits. Transaction General Journal Debit Credit
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