Question 4 --/4 Views Policies Current Attempt in Progress The following facts pertain to a non-cancelable lease agreement between Faldo Leasing Company and Carla Company, a lessee. January 1, $102,418 Commencement date Annual lease payment due at the beginning of each year, beginning with January 1, Residual value of equipment at end of lease term guaranteed by the lessce Expected residual value of equipment at end of lease term Leasc torm Economic life of leased equipment Fair value of asset at January 1, Lessor's implicit rate Lessee's incremental borrowing rate $55,000 $50,000 6 years 6 years $546,000 8% 8% The asset will revert to the lessor at the end of the lease term. The lessee uses the straight-line amortization for all leased equipment. Click here to view factor tables. Prepare an amortization schedule that would be suitable for the lessee for the lease term. (Round present value factor corkoutations to 5 decimal places, eg. 1.25124 and the final onswers to decimal places eg. 5,275.) CARLA COMPANY (Lessce) Lease Amortization Schedule Annual Lease Payment Plus GRV Interest on Liability Reduction of Lease Liability Date Lease Liability 1/1/20 1/1/20 1/1/21 1/1/22 1/1/23 1/1/24 1/1/25 12/31/26 List of Accounts Prepare all of the journal entries for the lessee for and to record the lease agreement, the lease payments, and all expenses related to this lease. Assume the lessee's annual accounting period ends on December 31. (Credit account titles are automatically Indented when amount is entered. Do not indent manually If no entry is required, select "No Entry for the account titles and enter for the amounts. Round answers to O decimal places c. 5,275. Record jounal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Jan 1.2020 T (To record the lease.) During 2020 (To record first lease payment.) Der 31 202 (To record interest.) Dec 31, 2020 (To record amortization.) Jan 1, 2021 (To record second lease payment.) During 2021 (To record interest.) Dec 31, 2021 (To record amortization.) List of Accounts Suppose Carla received a lease incentive of $5,000 from Faldo Leasing to enter the lease. How would the initial measurement of the lease liability and right-of-use asset be affected? Right-of-use asset Lease Liability $ $ What if Carla prepaid rent of $5,000 to Faldo? Right-of-use assets Lease Liability $ List of Accounts Save for Later Attempts: 0 of 2 used Submit Answer Question 4 --/4 Views Policies Current Attempt in Progress The following facts pertain to a non-cancelable lease agreement between Faldo Leasing Company and Carla Company, a lessee. January 1, $102,418 Commencement date Annual lease payment due at the beginning of each year, beginning with January 1, Residual value of equipment at end of lease term guaranteed by the lessce Expected residual value of equipment at end of lease term Leasc torm Economic life of leased equipment Fair value of asset at January 1, Lessor's implicit rate Lessee's incremental borrowing rate $55,000 $50,000 6 years 6 years $546,000 8% 8% The asset will revert to the lessor at the end of the lease term. The lessee uses the straight-line amortization for all leased equipment. Click here to view factor tables. Prepare an amortization schedule that would be suitable for the lessee for the lease term. (Round present value factor corkoutations to 5 decimal places, eg. 1.25124 and the final onswers to decimal places eg. 5,275.) CARLA COMPANY (Lessce) Lease Amortization Schedule Annual Lease Payment Plus GRV Interest on Liability Reduction of Lease Liability Date Lease Liability 1/1/20 1/1/20 1/1/21 1/1/22 1/1/23 1/1/24 1/1/25 12/31/26 List of Accounts Prepare all of the journal entries for the lessee for and to record the lease agreement, the lease payments, and all expenses related to this lease. Assume the lessee's annual accounting period ends on December 31. (Credit account titles are automatically Indented when amount is entered. Do not indent manually If no entry is required, select "No Entry for the account titles and enter for the amounts. Round answers to O decimal places c. 5,275. Record jounal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Jan 1.2020 T (To record the lease.) During 2020 (To record first lease payment.) Der 31 202 (To record interest.) Dec 31, 2020 (To record amortization.) Jan 1, 2021 (To record second lease payment.) During 2021 (To record interest.) Dec 31, 2021 (To record amortization.) List of Accounts Suppose Carla received a lease incentive of $5,000 from Faldo Leasing to enter the lease. How would the initial measurement of the lease liability and right-of-use asset be affected? Right-of-use asset Lease Liability $ $ What if Carla prepaid rent of $5,000 to Faldo? Right-of-use assets Lease Liability $ List of Accounts Save for Later Attempts: 0 of 2 used Submit
