On the 31 December 2015, Nhyiraba Limited leased a machine for a project from Manii Limited up until 31 December 2020. There was no known interest rate in the contract agreement but Nhyiraba Limited’s current cost of borrowing stood at 5 percent with a present value interest factor of an annuity (PVIFA) 2.50. The annual lease payment of R150,000 payable in advance was applied Prepare a financial statement extract (income statement and SOFP) for the above transactions
On the 31 December 2015, Nhyiraba Limited leased a machine for a project from Manii Limited up until 31 December 2020. There was no known interest rate in the contract agreement but Nhyiraba Limited’s current cost of borrowing stood at 5 percent with a present value interest factor of an annuity (PVIFA) 2.50. The annual lease payment of R150,000 payable in advance was applied Prepare a financial statement extract (income statement and SOFP) for the above transactions
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On the 31 December 2015, Nhyiraba Limited leased a machine for a project from Manii Limited up until 31 December 2020. There was no known interest rate in the contract agreement but Nhyiraba Limited’s current cost of borrowing stood at 5 percent with a present value interest factor of an annuity (PVIFA) 2.50. The annual lease payment of R150,000 payable in advance was applied
Prepare a financial statement extract (income statement and SOFP) for the above transactions
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