What formula is used to compute the Present Value?
*The professor mentioned it would be something like =C15+NPV((5%/36),C16:C51) since the first payment was received on day 1 in this case and the rate must agree to the period of cash flows
How is the Interest computed/How do we find the Interest Expense?
SAMPLECO FACILITY LEASE EXAMPLE REQUIRED JOURNAL ENTRIES DiSCUSS FORMULA Inception: ROU Asset (Right of Use) $167,523 63 $167.523.63 Lease Liablity Interest Expense Amortization Expense (Pymt) Present Value $167,523.63 Month 2 Term (yrs) Monthly Payment 4,653.43 5,000 ROU Asset $ 4,853.43 Beg Bal Number of Pyms) 1/1/2018 Lease Liability $ 5,000.00 $ 5.000.00 1/1/2018 2/1/2018 3/1/2018 4/1/2018 5/1/2018 6/1/2018 7/1/2018 B/1/2018 9/1/2018 10/1/2018 11/1/2018 121/2018 1/1/2019 21/2019 3/1/2019 4/1/2019 5/1/2019 8/1/2019 7/1/2019 B/1/2019 9/1/2019 S 5.000.00 $ 162,523.63 $ 162,523.63 $ 5,000.00 677.18 4,322 82 158,200.81 $ 158,20081 5,000.00 659.17 4,34083 153,859 98 $ 153,859.98 5,000.00 S 641.08 4.358.32149,501.06 $ 149,501.06 5,000.00 622.92$ 4,377.08 $ 145,123.98 $ 145,123.98 $ 5,000.00 604.68 $ 4,395.32 140,728.66 $140,728.66 5,000.00 $ 586.37 4,413.63 136 315.03 $ 136,315.03 $ 5,000.00 $ 567.98 4,432.02 $ 131,883.01 $131,883.01 $ 5,000.00 S549.51 $ 450.49 $ 127.432 53 $ 127,432.53 S 5,000.00 S 530974.469.03 122,963 49 $ 122,963.49 S 5,000.00 S 51235 4.48785 118.475.84 $ 118,475.84 $ 5,000.00 S 49365 $ 4,50635 $ 113,369.49 $ 113,969.49 $ 5,000.00 $ 474.87 4,525.13 $ 109.444.36 $ 109,444.36 $ 5,000.00 S 456.02 4,543.98 $ 104,900.38 $ 104,900.38 $ 5,000.00 $ 437.08 4,562.92 $ 100,337 47 $ 100,33747 $ 5,000.00 S 418.07 4,581.93 $ 95,755.54 $ 95,755.54 S 5,000.00 S 398984,601.02 91.154 52 S 91,154.52 5,000.00 S 379.81 S 4,620.19 86,534 33 $ 86,534.33 5,000.00 S 360.56 $ 4,63944 $ 81,89489 $ 81,894.89 5,000.00 S 341.23 $ 4,658.77 $ 77,236.12 $ 77,236.12 $ 5,000.00 S 321.82 4,678.18 $ 72,557.94 S 167,523.63 $ 5,000.00 $ 14 16 18 20 10/1/2019 11/1/2019 12/1/2019 1/2020 21/2020 31/2020 4/1/2020 5/1/2020 6/1/2020 7/1/2020 $ 72,557.94 S 5,000.00 $30232 4,69768 S 67,860 26 $67,860.26 S 5,000.00 $282.75 $ 4,71725 $ 63,143.01 $ 63,143.01 5,000.00$263.10 4,736.90 58.406.11 $ 58.406.11 5,000.00$24336 4,756.64 53,649.47 $53,649.47 $ 5,000.00 $22354 4,776.46 $ 48,873.01 $ 48.873.01 5,000.0020364 4,79636 44.07665 44.076.65 S 5.000.00 183.65 S4.816.35 39.260.30 $ 39,260.30 5,000.00 $16358$ 4,836.42 $ 34.42388 $ 34,423.88 5,000.00 14343 4,856.57$29,567 32 $ 29,567.32 5,000.0012320 4,876.80$24,69051 $24,690.51 5,000.00 10288$ 4,897.12$ 19,793 39 23 25 20 91/2020 19,793.39 S 5,000.00 8247 4,917 53$ 14875 8 14,875.88 $ 5,000.00 61.98 4,938.02 9937.85 9,037.85 S 5,000.00 41.41 4.050 59S 4,079 25 10/1/202 12/1/2020 4,97925 S 5,000.00 20 7 Total of Payments
