Question Completion Status: "Zhang Limited leases a helicopter from Tranter Limited with the following terms: lease term is 10 years: estimated economic life of the leased asset is 25 years; 10 annual rental payments of $900 000 are payable at the end of each year, the $900 000 payment includes service and maintenance costs of 5100 000, residual value is S50 000, the guaranteed residual value by the lessee at the end of the lease term is $40 000; interest rate implicit in the lease is 5%. The journal entry format for the lessee at the end of the first year includes: Oor Lease expense 900 000, Cr Bank 900000" O Dr Lease expense 800 000, Dr Executory costs 100 000, Cr Bank 900 000 O Dr Lease Liability (B00000-), Dr Interest Expense (y). Cr Bank 800 000 "Dr Lease Liability (900 000 - x), Dr Interest Expense (X), Cr Bank 900 000 QUESTION 4 "Zhang Limited leases a helicopter from Tranter Limited with the following terms: lease term is 10 years; estimated economic life of the leased asset is 25 years; 10 annual rental payments of $900 000 are payable at the end of each year, the $900 000 payment includes service and maintenance costs of $100 000, residual value is 550 000, the guaranteed residual value by the lessee at the end of the lease term is $40 000 interest rate implicit in the lease is 5%. The journal entry format for the lessee at the end of the first year includes: O "Dr Bank 100 000, Gr Executory costs 100 000 Dr Accumulated Amortisation Sx, Cr Amortisation of right-of-use helicopter S** O "Dr Bank 300 000, Lease Liability 800 000 Dr Amortisation of right-of-use helicopter Sx, Cr Accumulated amortisation $x* QUESTIONS "Zhang Limited leases a helicopter from Tranter Limited with the following terms: lease term is 10 years; estimated economic life of the leased asset is 25 years: 10 annual rental payments of 5900 000 are payable at the end of each year, the $900 000 payment includes service and maintenance costs of $100000; residual value is $50 000, the guaranteed residual value by the lessee at the end of the lease term is $40 000, Interest rate implicit in the lease is 5%. Note: The present value interest factor of an annuity of 10 payment of $15 7.7217;the present value of a lump sum of S1 discounted 10 periods at 5% 0.6139. The journal entry for Hesser on the day the lease contract is signed is" O Dr Right of use helicopter (800 000x 1.7217 10 000 0.6139). Cr Lease Liability (HOO 000x 7.7217 10 000x0.6139) "Dr Right-of-use helicopter (900 COOKT.T217). Cr Lease Liability (900 000X1.7217)" O Dr Right-of-use helicopter (800 000X1.1217 40 000 0.6139). Create Llability (AOOOOO7.7217 40 00060.6139" right of use helicopter (800 000X1.1217). Cr Lease Liability to Ox7.7217
