K12E_SMCH21COMPLETE

# K12E_SMCH21COMPLETE - CHAPTER 21 Accounting for Leases...

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21-1 CHAPTER 21 Accounting for Leases ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics Questions Brief Exercises Exercises Problems Concepts for Analysis * 1. Rationale for leasing. 1, 2, 4 1, 2 * 2. Lessees; classification of leases; accounting by lessees. 3, 6, 7, 8, 14 1, 2, 3, 4 1, 2, 3, 5, 7, 8, 11, 12, 13, 14 1, 2, 3, 4, 6, 7, 8, 9, 11, 13, 15, 16 1, 2, 3, 4, 5 * 3. Disclosure of leases. 19 4, 5, 7, 8 2, 3, 5 * 4. Lessors; classification of leases; accounting by lessors. 5, 9, 10, 11, 12, 13 6, 7, 8, 11 4, 5, 6, 7, 9, 10, 12, 13, 14 1, 2, 3, 5, 10, 12, 14, 17 4 * 5. Residual values; bargain purchase options; initial direct costs. 15, 16, 17, 18 5, 9, 10 4, 8, 9, 10 6, 7, 8, 9, 14, 15 2, 5, 6 *6. Sale and leaseback. 20 12 15, 16 7, 8 *This material is dealt with in an Appendix to the chapter.

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21-2 ASSIGNMENT CLASSIFICATION TABLE (BY LEARNING OBJECTIVE) Learning Objectives Brief Exercises Exercises Problems 1. Explain the nature, economic substance, and advantages of lease transactions. 2. Describe the accounting criteria and procedures for capitalizing leases by the lessee. 1, 2, 3, 4 1, 2, 3, 5, 11 1, 4, 6, 7, 8, 9, 11, 12, 14, 15, 16 3. Contrast the operating and capitalization methods of recording leases. 5 5, 12, 13, 14 2, 3, 15 4. Identify the classifications of leases for the lessor. 6, 7, 8 12, 13, 14 2, 10, 13, 16 5. Describe the lessor’s accounting for direct- financing leases. 6, 7 4, 10 5 6. Identify special features of lease arrangements that cause unique accounting problems. 9, 10 8 4, 9, 11 7. Describe the effect of residual values, guaranteed and unguaranteed, on lease accounting. 9, 10 3, 8 10, 11, 13, 14, 15, 16 8. Describe the lessor’s accounting for sales-type leases. 11 6, 7, 9 1, 3, 10, 13 9. List the disclosure requirements for leases. 3, 4, 5, 7, 8 *10. Understand and apply lease accounting concepts to various lease arrangements. 12 15, 16
21-3 ASSIGNMENT CHARACTERISTICS TABLE Item Description Level of Difficulty Time (minutes) E21-1 Lessee entries; capital lease with unguaranteed residual value. Moderate 15–20 E21-2 Lessee computations and entries; capital lease with guaranteed residual value. Moderate 20–25 E21-3 Lessee entries; capital lease with executory costs and unguaranteed residual values. Moderate 20–30 E21-4 Lessor entries; direct financing lease with option to purchase. Moderate 20–25 E21-5 Type of lease; amortization schedule. Simple 15–20 E21-6 Lessor entries; sales-type lease. Moderate 15–20 E21-7 Lessee-lessor entries; sales-type lease. Moderate 20–25 E21-8 Lessee entries with bargain purchase option. Moderate 20–30 E21-9 Lessor entries with bargain purchase option. Moderate 20–30 E21-10 Computation of rental; journal entries for lessor. Moderate 15–25 E21-11 Amortization schedule and journal entries for lessee. Moderate 20–30 E21-12 Accounting for an operating lease. Simple 10–20 E21-13 Accounting for an operating lease. Simple 15–20 E21-14 Operating lease for lessee and lessor. Simple 15–20 *E21-15 Sale and leaseback. Moderate 20–30 *E21-16 Lessee-lessor, sale-leaseback. Moderate 20–30 P21-1 Basic lessee computations and entries; capital lease. Simple 20–25 P21-2 Operating lease; lessee-lessor entries. Simple 20–30 P21-3 Lessee-lessor entries; balance sheet presentation; sales-type lease.

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