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QUESTION DATA: You, the Controller at Bob's Electronics Ltd. just completed a review of a new non-cancellable lease agreement with Tropical Leasing Corp. After applying

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QUESTION DATA: You, the Controller at Bob's Electronics Ltd. just completed a review of a new non-cancellable lease agreement with Tropical Leasing Corp. After applying the appropriate lease classification criteria, you correctly concluded the lease to be treated as a capital lease in accordance with ASPE. During your analysis, you obtained the following facts: Lease term commencing October 1, 2020 3 Economic life of leased equipment 8 years Fair value of leased equipment at October 1, 2020 $70,000 7 Unguaranteed residual value at end of lease term $7,034 5 years The asset will revert to Tropical Leasing Corp. at the end of the lease term. Bob's Electronics Ltd, uses the straight-line depreciation method for all equipment. 10 You prepared the following correct amortization schedule for the first three lease payments: Date Payment Interest Principal 3 Oct. 1/20 14 Oct. 1/20 15 Oct. 1/21 16. Oct. 1/22 P1 P2 P3 Carrying value $ 64,744 50,244 38,759 26,585 14,500 14,500 14,500 3,015 2,326 14,500 11,485 12,174 REQUIRED: You are preparing the financial statement presentation for Bob's Electronics Ltd, year-end of December 31. Answer the following questions with respect to this lease agreement. 19 (1) What accounts and amounts will appear on Bob's income statement for the year ending December 31, 2020? Use B E (1) What accounts and amounts will appear on Bob's income statement for the year ending December 31, 2020? Use the drop down boxes to select the appropriate account name. Round all final amounts to the nearest whole dollar using the ROUND formula. G Account name Amount $ 12). What accounts and amounts will appear on Bob's balance sheet as at December 31, 2020? Use the drop down boxes to select the appropriate account name under the dassification provided. Round all amounts to the nearest whole dollar using the ROUND formula. Enter any credit balances as negative numbers. Classification Account Name Amount ($) Non-current assets Current liabilities Non-current Habilities What accounts and amounts will appear on Bob's income statement for the year ending December 31, 2021? Use drop-down boxes to select the appropriate account name. Round all final amounts to the nearest whole dollar the ROUND formula. Cover Sheet 01 02 03 Q4 05 06 (3) What accounts and amounts will appear on Bob's income statement for the year ending December 31, 2021? Use the drop-down boxes to select the appropriate account name. Round all final amounts to the nearest whole dollar using the ROUND formula. Account name Amount $ (4). What accounts and amounts will appear on Bob's balance sheet as at December 31, 2021? Use the drop-down boxes to select the appropriate account name under the classification provided. Round all amounts to the nearest whole dollar using the ROUND formula. Enter any credit balances as negative numbers. Classification Account Name Amount ($) Non-current assets Current liabilities Non-current liabilities QUESTION DATA: You, the Controller at Bob's Electronics Ltd. just completed a review of a new non-cancellable lease agreement with Tropical Leasing Corp. After applying the appropriate lease classification criteria, you correctly concluded the lease to be treated as a capital lease in accordance with ASPE. During your analysis, you obtained the following facts: Lease term commencing October 1, 2020 3 Economic life of leased equipment 8 years Fair value of leased equipment at October 1, 2020 $70,000 7 Unguaranteed residual value at end of lease term $7,034 5 years The asset will revert to Tropical Leasing Corp. at the end of the lease term. Bob's Electronics Ltd, uses the straight-line depreciation method for all equipment. 10 You prepared the following correct amortization schedule for the first three lease payments: Date Payment Interest Principal 3 Oct. 1/20 14 Oct. 1/20 15 Oct. 1/21 16. Oct. 1/22 P1 P2 P3 Carrying value $ 64,744 50,244 38,759 26,585 14,500 14,500 14,500 3,015 2,326 14,500 11,485 12,174 REQUIRED: You are preparing the financial statement presentation for Bob's Electronics Ltd, year-end of December 31. Answer the following questions with respect to this lease agreement. 19 (1) What accounts and amounts will appear on Bob's income statement for the year ending December 31, 2020? Use B E (1) What accounts and amounts will appear on Bob's income statement for the year ending December 31, 2020? Use the drop down boxes to select the appropriate account name. Round all final amounts to the nearest whole dollar using the ROUND formula. G Account name Amount $ 12). What accounts and amounts will appear on Bob's balance sheet as at December 31, 2020? Use the drop down boxes to select the appropriate account name under the dassification provided. Round all amounts to the nearest whole dollar using the ROUND formula. Enter any credit balances as negative numbers. Classification Account Name Amount ($) Non-current assets Current liabilities Non-current Habilities What accounts and amounts will appear on Bob's income statement for the year ending December 31, 2021? Use drop-down boxes to select the appropriate account name. Round all final amounts to the nearest whole dollar the ROUND formula. Cover Sheet 01 02 03 Q4 05 06 (3) What accounts and amounts will appear on Bob's income statement for the year ending December 31, 2021? Use the drop-down boxes to select the appropriate account name. Round all final amounts to the nearest whole dollar using the ROUND formula. Account name Amount $ (4). What accounts and amounts will appear on Bob's balance sheet as at December 31, 2021? Use the drop-down boxes to select the appropriate account name under the classification provided. Round all amounts to the nearest whole dollar using the ROUND formula. Enter any credit balances as negative numbers. Classification Account Name Amount ($) Non-current assets Current liabilities Non-current liabilities

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