E21-2 (bills and entries under Bestonung; Capital creditor with guaranteed residual value) Pat Delaney Company leases an automobile at fair value of $US 8,725 to John Simon Motors, Inc., on the following terms: 7 1/1/08 Leasing 440,000.00 Leasing Liability 440,000.00 What does it document the leasing requirement for LESSEE? 01.01.08 Rental 440,000.00 Rental 440,000.00 Which listing registers the first rental contract? 01.01.08 Execution costs – Property taxes 2,470.51 Leasing liability 69,529.49 Cash payment 72,000.00 35 A. Calculate the amount of the rental application at the beginning of the lease agreement. ($21, x) – ($4,000 x) – 91,000 USD 1. Jan Way has the option to purchase the equipment for $16,000 after the end of the lease. 2. The equipment is valued at $160,000 at Castle Leasing Company. The useful eco-43 Morgan Marie Leasing Company (Lessor) Lease Amortization ScheduleB. Prepare a amortization schedule that would be suitable for the lessor for the duration of the lease. Morgan Marie Leasing Company (Leasing) Leasing Repayment stumble annual interest rate rental Net Payment Term Payment (10%) Invest- of Net Plus URV Net Invest. Recovery Investment 1/1/ 245,000 1/1/46, 46, .000 1/1/, , ,900 1/1/ , , , 190 1/1/, , , , 609 1/1,, , ,870 1/1/ , ,657 12/31, , , , , . Kimberly-Clark devalues similar buildings using the linear method. 4. The lease is not renewable.
With the termination of the lease, the building returns to the owner. 5. Kimberly Clark`s incremental interest rate is 12% per year. The implied interest rate of the lessor is not known 17 What is the balance of the lease receivables?160,000 USD (as PV of the lease) 10 Payment on 1/1/ 2 1 09 1/1/09 Execution costs – Property taxes 2,470.51 Interest rates (Leasinglib) 44,456.46 5.073.03 Cash 72,000.00 Other items 31.12.09 Amortization 44,000.00 Accumulated Amortization – Capital Lease 44,000.00 12/31/09 Interest expense 41,447.70 Leasing liability (int/p)…… 41,447.70 Owner`s Entries; Sales-Type Lease with Option to Purchase) Castle Leasing Company signs a lease agreement for the rental of electronic devices to Jan Way Company on January 1, 2020. The term of the non-cancellable lease is 2 years and payments are required at the end of each year. The following information relates to this agreement. 23 Crosley Company, a machine dealer, leased a machine to Dexter Corporationon on January 1, The lease is for a period of 8 years and requires identical annual payments of $35,013 at the beginning of each year.