ACC202WA3 - P15-1 December 31, 2015 Rent expense. Deferred...

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P15-1 December 31, 2015 Rent expense. ...................................................................... 15,000 Deferred rent expense payable. ....................................... 3,000 Cash. ................................................................................ 12,000 December 31, 2025 Rent expense. ...................................................................... 15,000 Deferred rent expense payable. ........................................... 2,000 Cash. ................................................................................ 17,000 P 15-2 1. Lease liability at the inception of the lease = 172,501 2. Leased asset = 192,501 3. Lease term = 20 years 4. Asset’s residual value expected at the end of the lease term = 35,000 5. Residual value guaranteed by the lessee = 35,000 6. Effective annual interest rate = 10% 7. Total of minimum lease payments = 435,000 8. Total effective interest expense over the term of the lease = 242,499 P 15-3 Requirement 1 This lease is a Capital lease to lessee and direct financing lease to Lessor. The
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This note was uploaded on 10/16/2011 for the course ACCOUNTING 202 taught by Professor ?? during the Spring '10 term at Thomas Edison State.

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ACC202WA3 - P15-1 December 31, 2015 Rent expense. Deferred...

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