Scribd Logo
Upload

Welcome to Scribd!

  • 6 views

    In-Lab Example

    Uploaded by

    Yuan Yuan Liu
    - This document appears to show calculations related to an equipment lease. It includes calculations of lease payments, interest, principal reductions, and balances on both the lessee and lessor sides. - On the lessee side, it shows the lessee making 7 annual lease payments of $100,000 each, with interest reducing the principal balance each year. It also includes calculations of interest expense and the reducing lease liability balance on the lessee's books. - On the lessor side, it mirrors the lessee calculations but from the perspective of the lessor, showing the reducing lease receivable balance and interest income each period. - Additional details provided include calculations of executory costs, depreciation

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content

    You might also like

    In-Lab Example

    Uploaded by

    Yuan Yuan Liu
    6 views7 pages
    - This document appears to show calculations related to an equipment lease. It includes calculations of lease payments, interest, principal reductions, and balances on both the lessee and lessor sides. - On the lessee side, it shows the lessee making 7 annual lease payments of $100,000 each, with interest reducing the principal balance each year. It also includes calculations of interest expense and the reducing lease liability balance on the lessee's books. - On the lessor side, it mirrors the lessee calculations but from the perspective of the lessor, showing the reducing lease receivable balance and interest income each period. - Additional details provided include calculations of executory costs, depreciation

    Original Description:

    example

    Original Title

    In-lab example

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    - This document appears to show calculations related to an equipment lease. It includes calculations of lease payments, interest, principal reductions, and balances on both the lessee and lessor sides. - On the lessee side, it shows the lessee making 7 annual lease payments of $100,000 each, with interest reducing the principal balance each year. It also includes calculations of interest expense and the reducing lease liability balance on the lessee's books. - On the lessor side, it mirrors the lessee calculations but from the perspective of the lessor, showing the reducing lease receivable balance and interest income each period. - Additional details provided include calculations of executory costs, depreciation

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    6 views7 pages

    In-Lab Example

    Uploaded by

    Yuan Yuan Liu
    - This document appears to show calculations related to an equipment lease. It includes calculations of lease payments, interest, principal reductions, and balances on both the lessee and lessor sides. - On the lessee side, it shows the lessee making 7 annual lease payments of $100,000 each, with interest reducing the principal balance each year. It also includes calculations of interest expense and the reducing lease liability balance on the lessee's books. - On the lessor side, it mirrors the lessee calculations but from the perspective of the lessor, showing the reducing lease receivable balance and interest income each period. - Additional details provided include calculations of executory costs, depreciation

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 7

    A.

    B.

    100,000
    521,236
    70,496
    591,732

    25,000 Bargain purchase


    70,496

    499,271
    63,017

    Date
    1/1/2001
    1/1/2001
    1/1/2002
    1/1/2003
    1/1/2004
    1/1/2005
    1/1/2006
    1/1/2007

    Annual Lease pmt


    100,000.00
    100,000.00
    100,000.00
    100,000.00
    100,000.00
    100,000.00
    25,000.00

    Interest (8%)
    33,202.02
    27,858.18
    22,086.84
    15,853.78
    9,122.09
    1,851.85

    Lease receivable recovery


    100,000.00
    66,797.98
    72,141.82
    77,913.16
    84,146.22
    90,877.91
    23,148.15

    Lease payable
    515,025.24
    415,025.24
    348,227.26
    276,085.45
    198,172.28
    114,026.06
    23,148.15
    0.00

    6%
    Lessor

    521,236.38 annuity
    17,624.01 bargain purchse
    538,860.39 Sale amount
    8%

    Lessee

    499,271.00
    15,754.24
    515,025.24

    64,378.16 (use 8 year, bargain purchase, use the useful life of the ass

    Lessee
    Payment #
    -

    payment amt
    1
    2
    3
    4
    5
    6
    7

    100,000
    100,000
    100,000
    100,000
    100,000
    100,000
    25,000

    Int

    $
    $
    $
    $
    $
    $

    prin redc
    33,202.02
    27,858.18
    22,086.84
    15,853.78
    9,122.09
    1,851.85

    100,000
    66,797.98
    72,141.82
    77,913.16
    84,146.22
    90,877.91
    23,148.15

    principal
    $ 515,025.24
    $
    $
    $
    $
    $
    $
    $

    415,025.24
    348,227.26
    276,085.45
    198,172.28
    114,026.06
    23,148.15
    0.00

    Lessor
    Payment #
    -

    payment amt
    1
    2
    3
    4
    5
    6
    7

    100,000
    100,000
    100,000
    100,000
    100,000
    100,000
    25,000

    Int

    $
    $
    $
    $
    $
    $

    prin redc
    26,331.62
    21,911.52
    17,226.21
    12,259.78
    6,995.37
    1,415.09

    100,000
    73,668
    78,088
    82,774
    87,740
    93,005
    23,585

    principal
    $ 538,860.39
    $ 438,860.39
    $ 365,192.02
    $ 287,103.54
    $ 204,329.75
    $ 116,589.53
    $ 23,584.91
    $
    0.00

    se, use the useful life of the asset, if return use 6 year)

    3rd pmt
    Interest payable
    Capital lease payable
    Cash
    end of 2nd year,
    show on Balance sheet for liab.
    current liab
    non current
    Interest pay

    100,000

    72,142
    276,085
    27,858

    day 0 for lessee record???


    Capital
    discoluures ???? Treat like other lT liab 5 years ???

    Depr entry

    $509,999.75
    Date

    Annual Lease pmt


    0
    1
    2
    3
    4
    5
    6
    7
    8
    9
    10

    92000.11
    92000.11
    92000.11
    92000.11
    92000.11
    92000.11
    92000.11
    92000.11
    92000.11
    92000.11

    Executory cost(Ins,
    Interest
    tax,(10%)
    maintanence)=period
    Reduction of cost
    lease
    Lease
    expense
    liab as you go
    $509,999.75
    9000
    $50,999.97
    $32,000.14 $477,999.61
    9000
    $47,799.96
    $35,200.15 $442,799.46
    9000
    $44,279.95
    $38,720.16 $404,079.30
    9000
    $40,407.93
    $42,592.18 $361,487.12
    9000
    $36,148.71
    $46,851.40 $314,635.72
    9000
    $31,463.57
    $51,536.54 $263,099.18
    9000
    $26,309.92
    $56,690.19 $206,408.99
    9000
    $20,640.90
    $62,359.21 $144,049.78
    9000
    $14,404.98
    $68,595.13 $75,454.65
    9000
    $7,545.46
    $75,454.65
    $0.00

    A. Calculate liabiltiy(pro-formal not really need with facts given)

    Ord annu

    $509,999.99
    Lessee
    Cash

    510000
    Equipment
    Unearned Rev

    Lease equipment

    510000
    lease liabiltiy

    Executory cost

    450000
    60000 must be liability account
    Reg loss up front
    510000
    9000

    cash/AP

    9000

    Deprcation expense

    51000
    accum depr

    Unearned Rev

    6000
    depreciation exp

    Interest expense
    Lease liab

    *what if sum-of-year depr, same way depr


    51000

    6000

    51000
    32000.11
    Cash

    83000.11

    Lessor
    equipment

    510000
    cash

    510000

    bility account
    Lease receivable

    510000
    equipment

    510000

    m-of-year depr, same way depr calcualated

    Cash

    83000.11
    Lease receviable
    32000.11
    interest reve
    51000

    You might also like