Receivable receivable 1 1 07 60 000 $ 1 1 07 16 228 $

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Unformatted text preview: Receivable Receivable 1/ 1/ 07 60, 000 $ 1/ 1/ 07 16, 228 $ 16, 228 $ 43, 772 12/ 31/ 07 16, 228 4, 377 11, 851 31, 921 12/ 31/ 08 16, 228 3, 192 13, 036 18, 885 12/ 31/ 09 16, 228 1, 889 14, 339 4, 546 12/ 31/ 10 5, 000 454 4, 546 Special Accounting Problems Special Accounting Problems Special Accounting Problems Special Accounting Problems * * rounding * Chapter 15-46 Illustration (LESSOR) Prepare all of the journal entries for the Exceptional for 2007 and 2008. Special Accounting Problems Special Accounting Problems Special Accounting Problems Special Accounting Problems Chapter 15-47 Special Accounting Problems Special Accounting Problems Special Accounting Problems Special Accounting Problems Illustration (LESSOR) Prepare all of the journal entries for the Exceptional for 2007 and 2008. Chapter 15-48 Primary difference between a direct-financing lease and a sales-type lease is the manufacturer’s or dealer’s gross profit (or loss). Lessor records the sale price of the asset, the cost of goods sold and related inventory reduction, and the lease receivable. Difference in accounting for guaranteed and unguaranteed residual values. Sales-Type Leases (Lessor) Special Accounting Problems Special Accounting Problems Special Accounting Problems Special Accounting Problems Chapter 15-49 Present value of the minimum lease payments must include the present value of the option. Only difference between the accounting treatment for a bargain purchase option and a guaranteed residual value of identical amounts is in the computation of the annual depreciation. Bargain Purchase Option (Lessee) Special Accounting Problems Special Accounting Problems Special Accounting Problems Special Accounting Problems Chapter 15-50 The accounting for initial direct costs: For operating leases , the lessor should defer initial direct costs. For sales-type leases , the lessor expenses the initial direct costs. For a direct-financing lease , the lessor adds initial direct costs to the net investment. Initial Direct Costs (Lessor) Special Accounting Problems Special Accounting Problems Special Accounting Problems Special Accounting Problems Chapter 15-51 The seller-lessee sells the asset to the buyer-leasor and immediately leases it back. The underlying transaction is to borrow cash. Any gain is reversed out and amortized at the same rate of deprecation. Losses are still recognized. If the lease is operating, still defer the gain but offset by rent expense, not deprecation (under IFRS it is recognized) Sale-Leasback (Lessee) Special Accounting Problems Special Accounting Problems Special Accounting Problems Special Accounting Problems Chapter 15-52 §840 does not indicate how to measure the current and noncurrent amounts. It requires that for the lessee the “obligations shall be separately identified on the balance sheet as obligations under capital leases and shall be subject to the same considerations as other obligations in...
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Receivable Receivable 1 1 07 60 000 $ 1 1 07 16 228 $ 16...

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