Table 6 4 PRESENT VALUE OF AN ORDINARY ANNUITY OF 1 (n) Periods 2 2 3 4 5 6 94340 1 83339 2 88388 2 85602 2 82861 2 77509 2 72325 2 67301 3 80773 3 76197 3 71710 3 62990 3 54595 3 46511 4 71346 4 645834 57971 4 45182 4 329484 21236 5 60143 5 508135 417195 24214 5 075694 91732 6 47199 6 34939 6 23028 6 00205 5 786375 58238 7 32548 7 170147 01969 6 73274 6 46321 6 20979 8 16224 7 97087 7 78611 7 43533 7 107826 80169 8 98259 8 75206 8 53020 8 11090 7 721737 36009 9 78685 9 51421 9 25262 8 76048 8 306417 88687 10 57534 10 25776 9 95400 9 385078 86325 8 38384 11 34837 10 98319 10 63496 9 98565 9 393578 85268 12 10625 11 69091 11 29607 10 56312 9 898649 29498 12 84926 12 38138 11 9379411 11839 10 379669 71225 98039 97561 97087 96154 95238 1 94156 1 92742 1 91347 1 88609 1 85941 4 13 14 15 Table 6 2 PRESENT VALUE OF1 (PRESENT VALUE OF A SINGLE SUM) 5 94340 89000 83962 79209 74726 70496 66506 62741 59190 55839 52679 49697 (n) Periods 3 98039 97561 97087 96154 95238 96117 95181 94260 92456 90703 94232 92860 91514 88900 86384 92385 90595 88849 85480 82270 90573 88385 86261 82193 78353 88797 86230 83748 79031 74622 87056 84127 81309 75992 71068 85349 82075 78941 73069 67684 83676 80073 76642 70259 64461 82035 78120 74409 67556 61391 80426 76214 72242 64958 58468 78849 74356 70138 62460 55684 2 24 4 5 10 12 5 PRESENT VALUE OF AN ANNUITY DUE OF 1 TABLE Contains the amounts that must be deposited now at a specified rate of interest to permit withdrawals of 1 at the b periodic intervals for the specified number of periods (Table 6 5) (n) Periods 2 1 00000 00000 1 00000 1 00000 00000 00000 1 98039 97561 1 97087 1 96154 1 95238 1 94340 2 94156 2 92742 2 91347 2 88609 2 85941 2 83339 3 88388 3 85602 3 82861 3 77509 3 72325 3 67301 4 80773 4 76197 4 71710 4 62990 4 54595 4 46511 5 71346 5 64583 5 57971 5 45182 5 329485 21236 6 60143 6 50813 6 41719 6 24214 6 07569 5 91732 7 47199 7 34939 7 23028 7 00205 6 786376 58238 8 32548 8 17014 8 01969 7 73274 7 46321 7 20979 9 162248 97087 8 78611 8 43533 8 10782 7 80169 9 98259 9 75206 9 53020 9 11090 8 721738 36009 10 78685 10 51421 10 25262 9 76048 9 30641 8 88687 11 57534 11 25776 10 95400 10 38507 9 863259 38384 2 3 4 5 6 4 10 12 13 Lease Liability 21983 Cash 21983 To record lease liability) 12 31 17 Lease Expense 21983 Lease Liability Right of Use Asset Click if you would like to Show Work for this question Open Show Work SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Exercise 21A 16 Your answer is partially correct Try again Laura Leasing Company signs an agreement on January 1, 2017, to lease equipment to Vaughn Company The following information relates to this agreement 1 The term of the non cancelable lease is 3 years with no renewal option The equipment has an estimated economic life of 5 years 2 The fair value of the asset at January 1, 2017, is $67,000 3 The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $4,000, none of which is guaranteed 4 The agreement requires equal annual rental payments of $21,983 to the lessor, beginning on January 1, 2017 5 The lessee's incremental borrowing rate is 5 The lessor's implicit rate is 496 and is unknown to the lessee 6 Vaughn uses the straight line depreciation method for all equipment Assume that the expected residual value at the end of the lease is $11,000, such that the payments are $19,826 Click here to view the factor table Prepare all of the journal entries for the lessee for 2017 to record the lease agreement, the lease payments, and all expenses related to this lease Assume the lessee's annual accounting period ends on December 31 (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round answers to O decimal places, e g 5,265 Credit account titles are automatically indented when the amount is entered Do not indent manually ) Date Account Titles and Explanation Debit Credit 1 1 17 Right of Use Asset 62858 Lease Liability 62858 (To record the lease)

Question

Table 6 4 PRESENT VALUE OF AN ORDINARY ANNUITY OF 1 (n) Periods 2  2   3  4  5  6  94340 1 83339 2 88388 2 85602 2 82861 2 77509 2 72325 2 67301 3 80773 3 76197 3 71710 3 62990 3 54595 3 46511 4 71346 4 645834 57971 4 45182 4 329484 21236 5 60143 5 508135 417195 24214 5 075694 91732 6 47199 6 34939 6 23028 6 00205 5 786375 58238 7 32548 7 170147 01969 6 73274 6 46321 6 20979 8 16224 7 97087 7 78611 7 43533 7 107826 80169 8 98259 8 75206 8 53020 8 11090 7 721737 36009 9 78685 9 51421 9 25262 8 76048 8 306417 88687 10 57534 10 25776 9 95400 9 385078 86325 8 38384 11 34837 10 98319 10 63496 9 98565 9 393578 85268 12 10625 11 69091 11 29607 10 56312 9 898649 29498 12 84926 12 38138 11 9379411 11839 10 379669 71225 98039  97561 97087  96154  95238 1 94156 1 92742 1 91347 1 88609 1 85941 4 13 14 15 Table 6 2 PRESENT VALUE OF1 (PRESENT VALUE OF A SINGLE SUM) 5  94340 89000 83962 79209 74726 70496  66506 62741  59190 55839  52679 49697 (n) Periods 3  98039  97561  97087  96154  95238 96117  95181  94260  92456  90703 94232  92860 91514  88900  86384 92385  90595  88849  85480  82270 90573  88385  86261  82193  78353 88797  86230  83748  79031  74622 87056  84127  81309  75992  71068 85349 82075  78941  73069  67684 83676  80073  76642  70259  64461  82035  78120 74409  67556  61391 80426  76214  72242  64958  58468  78849  74356  70138  62460  55684 2  24  4  5  10 12 5  PRESENT VALUE OF AN ANNUITY DUE OF 1 TABLE  Contains the amounts that must be deposited now at a specified rate of interest to permit withdrawals of 1 at the b periodic intervals for the specified number of periods (Table 6 5) (n) Periods 2  1 00000  00000 1 00000 1 00000  00000  00000 1 98039  97561 1 97087 1 96154 1 95238 1 94340 2 94156 2 92742 2 91347 2 88609 2 85941 2 83339 3 88388 3 85602 3 82861 3 77509 3 72325 3 67301 4 80773 4 76197 4 71710 4 62990 4 54595 4 46511 5 71346 5 64583 5 57971 5 45182 5 329485 21236 6 60143 6 50813 6 41719 6 24214 6 07569 5 91732 7 47199 7 34939 7 23028 7 00205 6 786376 58238 8 32548 8 17014 8 01969 7 73274 7 46321 7 20979 9 162248 97087 8 78611 8 43533 8 10782 7 80169 9 98259 9 75206 9 53020 9 11090 8 721738 36009 10 78685 10 51421 10 25262 9 76048 9 30641 8 88687 11 57534 11 25776 10 95400 10 38507 9 863259 38384 2   3  4  5  6  4 10 12 13 Lease Liability 21983 Cash 21983 To record lease liability) 12 31 17 Lease Expense 21983 Lease Liability Right of Use Asset Click if you would like to Show Work for this question  Open Show Work SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Exercise 21A 16 Your answer is partially correct  Try again  Laura Leasing Company signs an agreement on January 1, 2017, to lease equipment to Vaughn Company  The following information relates to this agreement  1  The term of the non cancelable lease is 3 years with no renewal option  The equipment has an estimated economic life of 5 years 2  The fair value of the asset at January 1, 2017, is $67,000  3  The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $4,000, none of which is guaranteed 4  The agreement requires equal annual rental payments of $21,983 to the lessor, beginning on January 1, 2017 5  The lessee's incremental borrowing rate is 5   The lessor's implicit rate is 496 and is unknown to the lessee 6  Vaughn uses the straight line depreciation method for all equipment  Assume that the expected residual value at the end of the lease is $11,000, such that the payments are $19,826 Click here to view the factor table Prepare all of the journal entries for the lessee for 2017 to record the lease agreement, the lease payments, and all expenses related to this lease  Assume the lessee's annual accounting period ends on December 31  (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round answers to O decimal places, e g  5,265  Credit account titles are automatically indented when the amount is entered  Do not indent manually ) Date Account Titles and Explanation Debit Credit 1 1 17 Right of Use Asset 62858 Lease Liability 62858 (To record the lease)

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Question

Table 6.4 PRESENT VALUE OF AN ORDINARY ANNUITY OF 1 (n) Periods 2% 2 % 3% 4% 5% 6% 94340 1.83339 2.88388 2.85602 2.82861 2.77509

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