FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Berkeley Inc. is engaged in manufacturing. For the procurement of machines, Berkeley Inc. uses the leasing method. On May 1, 2016, Berkeley Inc. entered into a lease contract with Mindy Corp. on a printing machine that costs Rp180,000,000 with the following agreement:
- The lease period is 3 years, payments are made semi-annually with the first payment is November 1, 2016.
- The lease payment per 6 months is Rp35,000,000,-.
- Berkeley Inc. has the option to purchase the production machine at a price of Rp1,500,000,- at the end of the lease period
- The economic life of the production machine is 5 years
- The incremental borrowing rate is 15%
- Mindy Corp's implicit interest rate is 12%, known to Berkeley Inc.
Prepare the schedule of lease payment! (Use the following format)
Transcribed Image Text:Recovery of Lease
Receivable
Date
Payment
Interest on Lease
Lease Receivable
Receivable
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