Would appreciate the help and work put in to this . Please use the tables provided below. thank you.
Lessor Ltd, who leases out equipment, has requested your help because their accountant has gone on extended stress leave. The lease details for an item of equipment purchased on 31 March 2019, are below: Commencement date 1 April 2019 Upfront payment due on the commencement date $30 000 Lease term for equipment item 3 years Fixed payments per annum at year end $100 000 Purchase option price. The lessee is reasonably certain to exercise this option S 50 000 Interest rate implicit in the lease Economic life of equipment asset 5 years Depreciation method used by lessor Straight line The relevant present value discount factors are: Present value of $1 in n periods = 3 1 = 6% 0.8396 Present value of an annuity *=} = 6% 2.6730 Required: Assume the lease was classified as a finance lease: Prepare the journal entry, on the commencement date, to initially recognise the finance lease receivable. Show your workings. (1) Complete the table in the answer booklet (11) Determine the carrying amount of the leased equipment as at 31 March 2023; this date is after the lease term has finished. Explain your answer. (iv) Prepare financial statements, over the lease period, to reflect the effects of the lease. Lessor Ltd classifies interest income as cash from investing activities. Assume the lease was classified as an operating lease: Prepare the necessary journal entries over the period of the lease period. Treat the purchase option price amount as an extra final payment, i.e., an operating lease would not have a purchase option. Show your workings. (11) Prepare financial statements, over the lease period, to reflect the effects of the lease. Note: You determined the cost of the PPE-Equipment item in the finance lease receivable recognition journal entry above. QUESTION 2-Late: Fuar laus charata unil niry at De Harip th| | Far Coo as 140 11100 3112001 3123002 (M) Thacarry Mal Faisa Lesser States of scilities at 31 March 2030 2001 La Led Statement of Chemie Infor the year and 31 March 20.30 Palue OCI Lace 2020 CHOA CFLA Jurnal Operating sal were per La of March 300 2493 Carrata Now Leer met Camprobameer har en 31 Marek 2001 Por Let 3033 Oce Laser Last Caribe how for the year and Mark: 2001 CFO CHIA Lessor Ltd, who leases out equipment, has requested your help because their accountant has gone on extended stress leave. The lease details for an item of equipment purchased on 31 March 2019, are below: Commencement date 1 April 2019 Upfront payment due on the commencement date $30 000 Lease term for equipment item 3 years Fixed payments per annum at year end $100 000 Purchase option price. The lessee is reasonably certain to exercise this option S 50 000 Interest rate implicit in the lease Economic life of equipment asset 5 years Depreciation method used by lessor Straight line The relevant present value discount factors are: Present value of $1 in n periods = 3 1 = 6% 0.8396 Present value of an annuity *=} = 6% 2.6730 Required: Assume the lease was classified as a finance lease: Prepare the journal entry, on the commencement date, to initially recognise the finance lease receivable. Show your workings. (1) Complete the table in the answer booklet (11) Determine the carrying amount of the leased equipment as at 31 March 2023; this date is after the lease term has finished. Explain your answer. (iv) Prepare financial statements, over the lease period, to reflect the effects of the lease. Lessor Ltd classifies interest income as cash from investing activities. Assume the lease was classified as an operating lease: Prepare the necessary journal entries over the period of the lease period. Treat the purchase option price amount as an extra final payment, i.e., an operating lease would not have a purchase option. Show your workings. (11) Prepare financial statements, over the lease period, to reflect the effects of the lease. Note: You determined the cost of the PPE-Equipment item in the finance lease receivable recognition journal entry above. QUESTION 2-Late: Fuar laus charata unil niry at De Harip th| | Far Coo as 140 11100 3112001 3123002 (M) Thacarry Mal Faisa Lesser States of scilities at 31 March 2030 2001 La Led Statement of Chemie Infor the year and 31 March 20.30 Palue OCI Lace 2020 CHOA CFLA Jurnal Operating sal were per La of March 300 2493 Carrata Now Leer met Camprobameer har en 31 Marek 2001 Por Let 3033 Oce Laser Last Caribe how for the year and Mark: 2001 CFO CHIA
