Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Rogers Company signs a five-year capital lease with Packer Company for office equipment. The annual year-end lease payment is $23,000, and the interest rate is
Rogers Company signs a five-year capital lease with Packer Company for office equipment. The annual year-end lease payment is $23,000, and the interest rate is 5%. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided.)
Present Value Tables Formula: PV 1/(1+i) 15% 0.9901 0.9804 0.9709 0.9615 0.9524 0.94340.9346 0.92590.9174 0.90910.9009 0.89290.8850 0.87720.8696 0.9803 0.9612 0.9426 0.9246 0.9070 0.8900 0.8734 0.85730.8417 0.82640.8116 0.79720.7831 0.76950.7561 3 0.9706 0.9423 0.9151 0.88900.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.7312 0.7118 0.6931 0.67500.6575 4 0.9610 0.9238 0.8885 0.85480.8227 0.79210.7629 0.7350 0.70840.6830 0.6587 0.6355 0.6133 0.5921 0.5718 5 0.9515 0.9057 0.8626 0.82190.7835 0.74730.7130 0.6806 0.6499 0.6209 0.5935 0.5674 0.5428 0.5194 0.4972 0.9420 0.8880 0.8375 0.7903 0.7462 0.7050 0.6663 0.63020.5963 0.56450.5346 0.50660.4803 0.45560.4323 0.9327 0.8706 0.8131 0.75990.7107 0.6651 0.6227 0.5835 0.5470 0.51320.4817 0.45230.4251 0.3996 0.3759 8 | 09235| 08535| 0.7894| 0.7307| 0.6768| 0.6274| 0.5820| 0.5403| 0.5019 0.4665 0.43391 04039| 0.3762| 0.3506 0.3269 0.9143 0.8368 0.7664 0.70260.6446 0.59190.54390.50020.4604 0.42410.3909 0.36060.3329 030750.2843 10 0.9053 0.8203 0.7441 0.6756 0.6139 0.55840.5083 0.4632 0.42240.3855 0.3522 0.3220 0.2946 0.2697 0.2472 11 0.8963 0.8043 0.72240.6496 0.5847 0.52680.4751 0.4289 0.38750.3505 0.3173 0.2875 0.2607 0.2366 0.2149 12 0.8874 0.7885 0.7014 0.6246 0.5568 0.49700.4440 0.39710.3555 0.31860.2858 0.2567 0.2307 0.2076 0.1869 13 0.8787 0.7730 0.6810 0.6006 0.5303 0.46880.4150 0.36770.3262 0.28970.2575 0.2292 0.2042 0.1821 0.1625 14 0.8700 0.75790.6611 0.57750.5051 0.44230.3878 0.34050.2992 0.2633 0.2320 0.20460.1807 0.1597 0.1413 15 0.8613 0.7430 0.6419 0.5553 0.4810 0.41730.3624 0.3152 0.2745 0.23940.2090 0.18270.1599 0.1401 0.1229 16 0.8528 0.7284 0.6232 0.5339 0.4581 0.39360.3387 0.2919 0.25190.2176 0.1883 0.1631 0.1415 0.1229 0.1069 17 0.8444 0.7142 0.6050 0.5134 0.4363 0.37140.3166 0.2703 0.23110.1978 0.1696 0.1456 0.1252 0.1078 0.0929 18 0.8360 0.7002 0.5874 0.4936 0.4155 0.3503 0.2959 0.2502 0.2120 0.17990.1528 0.1300 0.1108 0.0946 0.0808 19 0.8277 0.6864 0.5703 0.4746 0.3957 0.33050.2765 0.23170.1945 0.16350.1377 0.1161 0.0981 0.0829 0.0703 20 0.8195 0.6730 0.5537 0.45640.3769 0.3118 0.2584 0.21450.1784 0.14860.1240 0.1037 0.0868 0.07280.0611 21 0.8114 0.6598 0.5375 0.43880.3589 0.29420.2415 0.19870.1637 0.13510.1117 0.0926 0.0768 0.0638 0.0531 22 0.8034 0.64680.5219 0.42200.3418 0.27750.2257 0.1839 0.1502 0.12280.1007 0.0826 0.0680 0.0560 0.0462 23 0.7954 0.6342 0.5067 0.4057 0.3256 0.2618 0.2109 0.1703 0.1378 0.1117 0.0907 0.0738 0.0601 0.0491 0.0402 24 0.7876 0.6217 0.4919 0.3901 0.3101 0.24700.1971 0.1577 0.12640.1015 0.0817 0.0659 0.0532 00431 0.0349 25 0.7798 0.6095 0.4776 0.37510.2953 0.23300.1842 0.1460 0.1160 0.0923 0.0736 0.0588 0.0471 0.0378 0.0304 26 | 0.7720| 0.5976| 0.4637| 0.3607| 0 2812| 0.2198| 0.1722| 0.1352| 0.1064 | 0.0839| 00663| 00525| 0.0417| 00331 0.0264 27 0.7644 0.5859 0.4502 0.34680.2678 0.20740.1609 0.12520.0976 0.0763 0.0597 0.0469 0.0369 0.0291 0.0230 28 0.7568 0.57440.4371 0.3335 0.2551 0.19560.1504 0.11590.0895 0.06930.0538 0.04190.0326 0.0255 0.0200 29 0.7493 0.5631 0.4243 0.3207 0.2429 0.1846 0.1406 0.1073 0.0822 0.0630 0.0485 0.0374 0.0289 0.0224 0.0174 30 0.7419 0.5521 0.4120 0.3083 0.2314 0.17410.1314 0.09940.0754 0.05730.0437 0.03340.0256 0.0196 0.0151 1% 2% 3% 4% 5% 6% 8% 9% 10% 11% 12% 13% 14% 2 6 Required information 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 $23,000, and the interest rate is 5%(Table B1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided.) .Complete the below table to calculate the present value of Rogers's five-year lease payments Lease Payment Amount Present value of lease payments PV Factor $23,000x 4.329599,579 Journal entry worksheet Record the capital lease of office equipment. Note: Enter debits before credits. Transaction General Journal Debit Credit 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. Period Ending Period Ending Date Beginning Balance of Cash Lease Ending Balance of Interest on Reduction of Lease Liability Lease Liability Lease Liability Payment Lease Liability Year 1 Year 2 Year 3 Year 4 Year 5 Total 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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started