Chapter 21 Homework

# Chapter 21 Homework - Chapter21:AccountingforLeases...

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Chapter 21: Accounting for Leases Tiffany Watt Homework April 4, 2011 AC 302 – 01   Exercises E21-3 Capitalized amount = (\$72,000 - \$2,470.51) × Present value of an annuity due of 1 for 10 periods at 12% = \$69,529.49 ×  6.32825 = \$440,000 Lease Amortization Schedule Annual Reduction Lease Executor y Interest (12%) of Lease Lease Date Paymen t Costs on Liability Liability Liability 1/1/200 8 \$440,000 1/1/200 8 72,000 2,470.51 -0- \$69,529.4 9 370,470.5 1 1/1/200 9 72,000 2,470.51 \$44,456.46 25,073.03 345,397.4 8 1/1/201 0 72,000 2,470.51 41,447.70 28,081.79 317,315.6 9 Date Account Titles Debit Credit 1/1/2008 Leased Building Under Capital Leases \$440,000 Lease Liability \$440,000 1/1/2008 Property Tax Expense \$2,470.51 Lease Liability 69,529.49 Cash \$72,000 12/31/200 8 Depr. Expense - Capital Leases \$44,000 Accum. Depr. - Capital Leases \$44,000

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Chapter 21: Accounting for Leases Tiffany Watt Homework April 4, 2011 AC 302 – 01   12/31/200 8 Interest Expense \$44,456.4
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Chapter 21 Homework - Chapter21:AccountingforLeases...

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