On January 1, 2020, Yuri Company leased a machine withProblem 11-6 (IFRS)the following information:100,000Annual rental payable at the end of each year5 yearsLease termImplicit rate in the leasePresent value of an ordinary annuity of1 at 6% for 5 periods6%4.2124On January 1, 2022, Yuri Company and the lessor agreed toamend the original terms of the lease by reducing the annuollease payment by P20,000 and increasing the implicit rate to8%.The present value of an ordinary annuity of 1 at 8% for 3periods is 2.5771.Required:1. Prepare the table of amortization for 2020 and 2021.2. Prepare journal entries for 2020.3. Remeasure the lease liability on January 1, 2022.4. Prepare the table of amortization for 2022, 2023 and 2024.5. Prepare the journal entries for 2022.

The question is related to the Accounting for lease. The lessor Should record the asset at present…

amend the original terms of the lease by reducing the annual On January 1, 2022, Yuri Company and the lessor agreed to On January 1, 2020, Yuri Company leased a machine with Problem 11-6 (IFRS) On January 1, 2020, Yuri Company leased a machine . the following information: Annual rental payable at the end of each year Lease term 100,000 5 years Implicit rate in the lease Present value of an ordinary annuity of 1 at 6% for 5 periods 6% 4.2124 lease payment by P20,000 and increasing the implicit rate to 8%. The present value of an ordinary annuity of 1 at 8% for 3 periods is 2.5771. Required: 1. Prepare the table of amortization for 2020 and 2021. 2. Prepare journal entries for 2020. 3. Remeasure the lease liability on January 1, 2022. 4. Prepare the table of amortization for 2022, 2023 and 2024. 5. Prepare the journal entries for 2022.

amend the original terms of the lease by reducing the annual On January 1, 2022, Yuri Company and the lessor agreed to On January 1, 2020, Yuri Company leased a machine with Problem 11-6 (IFRS) On January 1, 2020, Yuri Company leased a machine . the following information: Annual rental payable at the end of each year Lease term 100,000 5 years Implicit rate in the lease Present value of an ordinary annuity of 1 at 6% for 5 periods 6% 4.2124 lease payment by P20,000 and increasing the implicit rate to 8%. The present value of an ordinary annuity of 1 at 8% for 3 periods is 2.5771. Required: 1. Prepare the table of amortization for 2020 and 2021. 2. Prepare journal entries for 2020. 3. Remeasure the lease liability on January 1, 2022. 4. Prepare the table of amortization for 2022, 2023 and 2024. 5. Prepare the journal entries for 2022.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Answer is $1,818 Please explain the reasoning and calculations
Date of commencement of lease - July 1, 2022 Duration of lease - 8 years Implicit rate of interest - 6% Initial up-front payment - P200,000 Lease payments at the end of each year - P100,000
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*attached is the problem REQUIRED: What is the lease liability on Dec. 31, 2020? What is the lease liability to be reported as non-current on Dec 31, 2020? What is the interest expense for 2020? What is the depreciation for 2020?
On July 1, 2020 an entity entered into an 8-year lease of a floor of a building with the following terms: Annual rental for the first three years payable at the end of each year 300,000 Annual rental for the next five years payable at the end of 400,000 each year Implicit interest rate 10% Compute the balance of lease liability on December 31, 2020. (Use four decimal places for your present value ex:1.3284) O 1,773,408 O 1,884,916 O 1,138,816 O 1,829,152
2. An entity entered into a lease of building on January 1, 2019 with the following information: Annual rental payable at the end of each year - 500,000 Lease term - 5 years Useful life of building - 20 years Implicit interest rate - 10% The lease contained an option for the lease to extend for a further 5 years. At the commencement date, the exercise of the extension option is not reasonably certain. After 3 years, however, on January 1, 2022, the lessee decided to extend the lease for a further 5 years. New annual rental payable at the end of each year - 600,000 New implicit interest rate - 8% On January 1, 2022, the present value of lease liability is (Round off final answer to whole number)
On December 31, 2020, Brick Co. leases Equipment to House, Inc. Annual Lease Payments made at beginning of Lease year $159,000 Implicit rate Guaranteed Residual Value Expected Residual Value Present value of an annuity due (7%,5) Present value of an ordinary annuity (7%,5) Present value of a single sum (7%,5) 7% $155,500 $56,500 4.38721 4.10020 0.71299 What journal entry would House, Inc. make at December 31, 2020 to record the lease assuming this is a finance lease? O DR Right of Use Asset $768,152; CR Lease Liability $768,152 O DR Right of Use Asset $808,426; CR Lease Liability $808,436 O DR Right of Use Asset $737,850; CR Lease Liability $737,850 O DR Right of Use Asset $626,980; CR Lease Liability $626,980
The table shows the new table of amortization from 2023 to 2029. Please help me understand where the 3,312,548 came from? what is the calculation? thank you
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Problem 4 On January 1, 2021, Twice Company entered into a lease agreement with the following: Floor space Annual rental payable at the end of each year Implicit rate in the lease 1,500 square meters 200,000 12% 12 years 6.1944 Lease term Present value of an ordinary annuity at 12% for 12 periods On January 1, 2024, the lessee and the lessor agreed to amend the original terms of the lease with the following information: Additional floor space Increase in rental payable at the end of each year Implicit rate in lease Present value of an ordinary annuity of 1 at 10% for 9 periods 2,000 square meters 300,000 10% 5.759 1. What amount should be reported as lease liability on January 1, 20217 2. What amount should be reported as additional lease liability on January 1, 2024? 3. What amount should be reported as total interest expense for 20247