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Chapter%2015%20-%20In-Class%20Exercises%20-%20Solution%20#1

# Chapter%2015%20-%20In-Class%20Exercises%20-%20Solution%20#1...

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Unformatted text preview: In‐Class Exercises Solutions: Exercise #1 PV of lease payments (fv=20,000, pmt=22,815, n=7, i=6%, annuity due) Annual amortization of leased equipment (10‐year life) Interest Expense Lease Obligation \$ 148,304.90 \$ 125,489.90 \$ 110,204.29 \$ 94,001.55 \$ 76,826.64 \$ 58,621.24 \$ 39,323.51 \$ 18,867.92 \$ 0.00 Chapter 15 \$148,304.90 \$14,830.49 Amortizatio Leased n of Equipment Equipment Balance \$148,304.90 \$14,830.49 \$133,474.41 \$14,830.49 \$118,643.92 \$14,830.49 \$103,813.43 \$14,830.49 \$88,982.94 \$14,830.49 \$74,152.45 \$14,830.49 \$59,321.96 \$14,830.49 \$44,491.47 \$103,813.43 Date 1/1/2010 1/1/2010 12/31/2010 12/31/2011 12/31/2012 12/31/2013 12/31/2014 12/31/2015 12/31/2016 Amount \$ 22,815.00 \$ 22,815.00 \$ 22,815.00 \$ 22,815.00 \$ 22,815.00 \$ 22,815.00 \$ 22,815.00 \$ 20,000.00 Principal \$ 22,815.00 \$ 15,285.61 \$ 16,202.74 \$ 17,174.91 \$ 18,205.40 \$ 19,297.73 \$ 20,455.59 \$ 18,867.92 \$ 7,529.39 \$ 6,612.26 \$ 5,640.09 \$ 4,609.60 \$ 3,517.27 \$ 2,359.41 \$ 1,132.08 1/1/2010 Leased Equipment Obligations under Capital Leases Lease expense Obligations under Capital Leases Cash 12/31/2010 Amortization Expense on Leased Equipment Accumulated Amortization on Leased Equipment Prepaid Executory Costs Obligations under Capital Leases Interest Expense Cash 12/31/2011 Prepaid Executory Costs Obligations under Capital Leases Interest Expense Cash 12/31/2016 Equipment Accumulated Amortization on Lease Equipment Leased Equipment 148,304.90 148,304.90 2,000.00 22,815.00 24,815.00 14,830.49 14,830.49 2,000.00 15,285.61 7,529.39 24,815.00 2,000.00 16,202.74 6,612.26 24,815.00 44,491.47 103,813.43 148,304.90 ACCT 4050 Page 2 of 4 Chapter 15 ‐ In‐Class Exercises ...
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