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Of P13,636. Payments oI P9 were made on both January 2, 2017 and January 2, 2018. Welington's incremental borrowing rate on the date of lease was 11% and the lessor's implicit rate, which was known to Welington, was 10%. In its December 31, 2018 balance sheet, what amount should Welington report as capital lease obligation, net of current portion?

Of P13,636. Payments oI P9 were made on both January 2, 2017 and January 2, 2018. Welington's incremental borrowing rate on the date of lease was 11% and the lessor's implicit rate, which was known to Welington, was 10%. In its December 31, 2018 balance sheet, what amount should Welington report as capital lease obligation, net of current portion?

FINANCIAL ACCOUNTING
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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In the long-term liabilities section of its balance sheet at December 31, 2016, Welington Company reported a lease obligation of P750,000, net of current portion of P13,636. Payments of P90,000 were made on both January 2, 2017 and January 2, 2018. Welington's incremental borrowing rate on the date of lease was 11% and the lessor's implicit rate, which was known to Welington, was 10%. In its December 31, 2018 balance sheet, what amount should Welington report as capital lease obligation, net of current portion? Round amounts to the nearest peso.
Transcribed Image Text:In the long-term liabilities section of its balance sheet at December 31, 2016, Welington Company reported a lease obligation of P750,000, net of current portion of P13,636. Payments of P90,000 were made on both January 2, 2017 and January 2, 2018. Welington's incremental borrowing rate on the date of lease was 11% and the lessor's implicit rate, which was known to Welington, was 10%. In its December 31, 2018 balance sheet, what amount should Welington report as capital lease obligation, net of current portion? Round amounts to the nearest peso.
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