Right to Use Asset

Present Value of Lease Payments:

Year 1: 700 x 0.9434 = $700

Year 2: 700 x 1.15 x 0.9434 = $759.434

Year 3: 700 x 1.15 x 1.15 x 0.8900 = $823.914

Total = $2,283.35

Lease Liability

Lease Payment

Year 1: 700

Year 2: 700 x 1.15 = $805

Year 3: 700 x 1.15 x 1.15 = $925.75

Total = $2,430.75

Lease Amortization Table
Date	Interest Expense	Payment	Balance
Year 1			$2,283.35
Year 2	-	$700	$1,583.35
Year 3	$95	$805	$873.35
Year 4	$52.4	$925.75	$0

Question: I was told my chart is correct, but I need help making up a table splitting the average payment between interest expense (recognized when accrued) and amortization of the right-to-use asset. I have to use the average payment since the payments were unequal. I'd appreciate the help

Use the information from Exercise 1220. Assume that the lease has been correctly classified as an operating lease. (Note: Since you are not determining what type of lease this is, not all of the information in the problem will be used) a. Determine the value of the right to use asset and lease liability at commencement of the lease b. For the lease expense recognized each year, determine the amount of interest and amortization that are included in each year's expense. E20. Operating Lease, No Lessee Guaranteed Residual Value, Lessee. Beachniont Restaurarts, Inc. erters into a lease for standard stoves and grills. The lease term is 3 years with ro rerewal or purchase options. There is no residual value guarantee, and the lease terms do not provide for a transfer of title. The economic life of the asset is 10 years. According to the terms of the lease cortract, Beachmont is required to pay rertals of $700 for the first year with payments increasirg by 15% per year for Years 2 and 3 . All lease paymerts are rade on January 1. The iriplicit rate in the lease is 6%. The fair value of the asset is $9,000. Beachr .ont kr ows the lessor's implicit rate. Beachmort's fiscal year ends or December 31