Special accounting problems special accounting

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Special Accounting Problems Special Accounting Problems Special Accounting Problems Special Accounting Problems
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Chapter 15-38 Illustration (LESSEE) What is the present value of the minimum lease  payments? Special Accounting Problems Special Accounting Problems Special Accounting Problems Special Accounting Problems
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Chapter 15-39 Illustration (LESSEE) What type of lease is this?  Explain. Capitalization Criteria: Capitalization Criteria: 1. 1. Transfer of ownership Transfer of ownership 2. 2. Bargain purchase option Bargain purchase option 3. 3. Lease term => 75% of economic life  Lease term => 75% of economic life  of leased property of leased property 4. 4. Present value of minimum lease  Present value of minimum lease  payments => 90% of FMV of  payments => 90% of FMV of  property property Special Accounting Problems Special Accounting Problems Special Accounting Problems Special Accounting Problems
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Chapter 15-40 Illustration (LESSEE) Prepare an amortization schedule that would be  suitable for the Velde.  10% Lease I nterest Reduction of Lease Date Payment Expense Liability Liability 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 0 * * rounding Special Accounting Problems Special Accounting Problems Special Accounting Problems Special Accounting Problems *
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Chapter 15-41 Illustration (LESSEE) Prepare all of the journal entries for the Velde for  2007 and 2008. Special Accounting Problems Special Accounting Problems Special Accounting Problems Special Accounting Problems
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Chapter 15-42 Illustration (LESSEE) Prepare all of the journal entries for the Velde for  2007 and 2008. Special Accounting Problems Special Accounting Problems Special Accounting Problems Special Accounting Problems
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Chapter 15-43 Lessor Accounting for Residual Value Lessor works on the assumption that it will realize the residual value  at the end of the lease term whether guaranteed or unguaranteed. Residual Values Special Accounting Problems Special Accounting Problems Special Accounting Problems Special Accounting Problems
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Chapter 15-44 Illustration (LESSOR) Calculation of the annual rental payment.  Special Accounting Problems Special Accounting Problems Special Accounting Problems Special Accounting Problems
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Chapter 15-45 Illustration (LESSOR) Prepare an amortization schedule that would be  suitable for the Exceptional.  10% Recovery Lease I nterest of Lease Date Payment Revenue 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 0 Special Accounting Problems Special Accounting Problems Special Accounting Problems Special Accounting Problems * * rounding *
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Chapter 15-46 Illustration (LESSOR) Prepare all of the journal entries for the  Exceptional for 2007 and 2008.
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