Question
Rogers Company signs a five-year capital lease with Packer Company for office equipment. The annual year-end lease payment is $15,000, 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 $15,000, and the interest rate is 8%. (Table B.1,Table B.2,Table B.3, andTable B.4)(Use appropriate factor(s) from the tables provided.) |
14. value:
1.17 points Required information
1. | Complete the below table to calculate the present value of Rogers five-year lease payments. |
References eBook & Resources Expanded tableDifficulty: 2 MediumLearning Objective: 10-C4 Appendix 10D-Describe accounting for leases and pensions.Check my work
15. value:
1.17 points Required information
2. | Prepare the journal entry to record Rogers capital lease at its inception. |
References eBook & Resources WorksheetDifficulty: 2 MediumLearning Objective: 10-C4 Appendix 10D-Describe accounting for leases and pensions.Check my work
16. value:
1.17 points Required information
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. |
References eBook & Resources Expanded tableDifficulty: 2 MediumLearning Objective: 10-C4 Appendix 10D-Describe accounting for leases and pensions.Check my work
17. value:
1.28 points Required information
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. |
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