WEBM October 1, 2020 6 years 6 years $313,043 $280,000 0 89 $62,700 P21.13 (LO 2, 4) Excel (Balance Sheet and Income Statement Disclosure-Lessee) The following facts pertain to a non-cancelable lezse agreement between Alschuler Leasing Company and McKee Electronics, a lessee, for a computer system. Commencement date Lease term Economic life of leased equipment Fair value of asset at October 1, 2020 Book value of asset at October 1, 2020 Residual value at end of lease term Lessor's implicit rate Lessee's incremental borrowing rate Annual lease payment due at the beginning of each year, beginning with October 1, 2020 The collectibility of the lease payments is probable by the lessor. The asset will revert to the lessor at the end of the lease term. The straight-line depreciation method is used for all equipment The following amortization schedule has been prepared correctly for use by both the lessor and the lessee in accounting for this lease. The lease is to be accounted for property as a finance lease by the lessee and as a sales-type lease by the lessor Lease Interest (8%) Reduction Balance of Lease Payment on Unpaid Liability of Lease Date Receipt Receivable Liability/Receivable 10/01/20 $313.043 10/01/20 $ 62,700 $ 62,700 10/01/21 62,700 $20,027 42,673 10/01/22 62,700 16,614 46,086 10/01/23 62,700 49,773 111,811 10/01/24 62.700 8,945 53.755 58,056 10/01/25 62,700 4,644 58,056 $376,200 $63,157 $313,043 a Liability/Receivable 250.343 207,670 161,584 12,927 Problems 21-73 Instructions September 30, 2017 September 30, 2027 Asuming the lessee's accounting period ends on September 30, wwer the following questions with Por to this lease agreement 1. What items and amounts will appear on the lessee's income statement for the year ending 2. What items and amounts will appear on the lessee's balance sheet at September 30, 2017 3. What items and amounts will appear on the lessee's income statement for the year ending 4. What items and amounts will appear on the lessee's balance sheet at September 30, 20221 b. Assuming the lessee's accounting period ends on December 31, answer the following questions with respect to this case agreement 1. What Items and amounts will appear on the lessee's income statement for the year ending 2. What items and amounts will appear on the lessee's balance sheet at December 31.20201 3. What items and amounts will appear on the lessee's income statement for the year ending 4. What items and amounts will appear on the lessee's balance sheet at December 31, 2017 December 31, 20207 December 31, 2017 (Balance Sheet and Income Statement Disclosure-Lexxore) Ausume P21.14 /LO 2, 4) Excel the same information as in P2.13. Instructions a. Assuming the lessor's accounting period ends on September 30, answer the following questions with respect to the lease agreement September 30, 20217 September 30, 2022 will appear on the lessor's income statement for the year ending 2. What trems and amounts will appear on the lessor's balance sheet at September 30, 2021 2 what items and amounts will appear on the lessor's income statement for the year ending What iterns and amounts will appear on the lessor's balance sheet at September 30, 2027 b. Assuming the lessor's accounting period ends on December 31, answer the following questions with 1. What items and amounts will appear on the lessor's income statement for the year ending 2. What items and amounts will appear on the lessor's balance sheet at December 31, 2020? 3. What items and amounts will appear on the lessor's income statement for the year ending December 31, 2021? 4. What items and amounts will appear on the lessor's balance sheet at December 31, 2017 respect to this lease agreement. December 31, 2020? WEBM October 1, 2020 6 years 6 years $313,043 $280,000 0 89 $62,700 P21.13 (LO 2, 4) Excel (Balance Sheet and Income Statement Disclosure-Lessee) The following facts pertain to a non-cancelable lezse agreement between Alschuler Leasing Company and McKee Electronics, a lessee, for a computer system. Commencement date Lease term Economic life of leased equipment Fair value of asset at October 1, 2020 Book value of asset at October 1, 2020 Residual value at end of lease term Lessor's implicit rate Lessee's incremental borrowing rate Annual lease payment due at the beginning of each year, beginning with October 1, 2020 The collectibility of the lease payments is probable by the lessor. The asset will revert to the lessor at the end of the lease term. The straight-line depreciation method is used for all equipment The following amortization schedule has been prepared correctly for use by both the lessor and the lessee in accounting for this lease. The lease is to be accounted for property as a finance lease by the lessee and as a sales-type lease by the lessor Lease Interest (8%) Reduction Balance of Lease Payment on Unpaid Liability of Lease Date Receipt Receivable Liability/Receivable 10/01/20 $313.043 10/01/20 $ 62,700 $ 62,700 10/01/21 62,700 $20,027 42,673 10/01/22 62,700 16,614 46,086 10/01/23 62,700 49,773 111,811 10/01/24 62.700 8,945 53.755 58,056 10/01/25 62,700 4,644 58,056 $376,200 $63,157 $313,043 a Liability/Receivable 250.343 207,670 161,584 12,927 Problems 21-73 Instructions September 30, 2017 September 30, 2027 Asuming the lessee's accounting period ends on September 30, wwer the following questions with Por to this lease agreement 1. What items and amounts will appear on the lessee's income statement for the year ending 2. What items and amounts will appear on the lessee's balance sheet at September 30, 2017 3. What items and amounts will appear on the lessee's income statement for the year ending 4. What items and amounts will appear on the lessee's balance sheet at September 30, 20221 b. Assuming the lessee's accounting period ends on December 31, answer the following questions with respect to this case agreement 1. What Items and amounts will appear on the lessee's income statement for the year ending 2. What items and amounts will appear on the lessee's balance sheet at December 31.20201 3. What items and amounts will appear on the lessee's income statement for the year ending 4. What items and amounts will appear on the lessee's balance sheet at December 31, 2017 December 31, 20207 December 31, 2017 (Balance Sheet and Income Statement Disclosure-Lexxore) Ausume P21.14 /LO 2, 4) Excel the same information as in P2.13. Instructions a. Assuming the lessor's accounting period ends on September 30, answer the following questions with respect to the lease agreement September 30, 20217 September 30, 2022 will appear on the lessor's income statement for the year ending 2. What trems and amounts will appear on the lessor's balance sheet at September 30, 2021 2 what items and amounts will appear on the lessor's income statement for the year ending What iterns and amounts will appear on the lessor's balance sheet at September 30, 2027 b. Assuming the lessor's accounting period ends on December 31, answer the following questions with 1. What items and amounts will appear on the lessor's income statement for the year ending 2. What items and amounts will appear on the lessor's balance sheet at December 31, 2020? 3. What items and amounts will appear on the lessor's income statement for the year ending December 31, 2021? 4. What items and amounts will appear on the lessor's balance sheet at December 31, 2017 respect to this lease agreement. December 31, 2020