Nath-Langstrom Services, Inc.

,
Operating lease
2013
1 Date
Lessee(Nath-Langstrom Services, Inc)

Account

30-Jun

Rent Expense
Cash

31-Dec

Rent Expense
Cash

30-Jun

Cash
Rent Revenue

31-Dec

Cash
Rent Revenue
Depreciation Expense
Accumulated Depreciation

2
Lessor( ComputerWorld Corporation )

vices, Inc.,
ase

Debit

Credit

10,000.00
10,000.00
10,000.00
10,000.00

10,000.00
10,000.00
10,000.00
10,000.00
15,000.00
15,000.00

Manufacturers Southern
Capital lease; lessee
2013-2014
Fair Value of Asset
$
Rate
Time(quarters)
Factor(from Pv Tables)

112,080.00
0.02
8
7.472

Quarterly Lease Payment$

15,000.00

Lease Amoritization Schedule

Rental Payment
1
2
3
4
5
6
7
8
Total

$
$
$
$
$
$
$
$
$

15,000.00
15,000.00
15,000.00
15,000.00
15,000.00
15,000.00
15,000.00
15,000.00
120,000.00

Effective Interest

$
$
$
$
$
$
$
$

1,942
1,680
1,414
1,142
865
582
294
7,920

Decrease in Balance
$
$
$
$
$
$
$
$
$

15,000
13,058
13,320
13,586
13,858
14,135
14,418
14,705
112,080

Outstanding Balance
$
112,080
$
97,080
$
84,022
$
70,702
$
57,116
$
43,258
$
29,123
$
14,705
$
(0)

Journal Entries
Date
1-Jan-13

Account
Leased equipment
Leased payable
Lease Payable
Cash

1-Apr-13

Interest Expense
Lease Payable
Cash

1-Jul-13

Interest Expense
Lease Payable
Cash

1-Oct-13

Interest Expense
Lease Payable
Cash

1-Dec-13

Interest Expense
Interest Payable
Depreciation Expense
Accumulated Depreciation

1-Jan-14

Interest Expense
Lease Payable
Cash

ers Southern
ase; lessee
3-2014

zation Schedule

l Entries
Debit
Credit
$ 112,080.40
$ 120,000.00
$

15,000
$ 15,000.00

$
$

$
$

$
$

1,942
13,058
$

15,000

15,000

15,000

1,680
13,320

1,414
13,586

1,142
$

1,142

$ 56,040.20
$ 56,040.20
$
$

1,142
13,858
$

15,000

Manufacturers Southern
Direct financing lease; lessor
2013-2014
Fair Value of Asset
$
Rate
Time(quarters)
Factor(from Pv Tables)

112,080.00
0.02
8
7.472

Quarterly Lease Payment$

15,000.00

Lease Amoritization Schedule

Rental Payment
1
2
3
4
5
6
7
8
Total

$
$
$
$
$
$
$
$
$

15,000.00
15,000.00
15,000.00
15,000.00
15,000.00
15,000.00
15,000.00
15,000.00
120,000.00

Effective Interest

$
$
$
$
$
$
$
$

1,942
1,680
1,414
1,142
865
582
294
7,920

Decrease in Balance
$
$
$
$
$
$
$
$
$

15,000
13,058
13,320
13,586
13,858
14,135
14,418
14,705
112,080

Outstanding Balance
$
112,080
$
97,080
$
84,022
$
70,702
$
57,116
$
43,258
$
29,123
$
14,705
$
(0)

Journal Entries
Date
1-Jan-13

Account
Lease Receivable
Unearned Interest Revenue
Cost of Equipment
Cash
Lease Receivable

1-Apr-13

Cash
Lease Receivable
Unearned Interest Revenue
Interest Revenue

1-Jul-13

Cash
Lease Receivable
Unearned Interest Revenue

Interest Revenue
1-Oct-13

Cash
Lease Receivable
Unearned Interest Revenue
Interest Revenue

1-Dec-13

Unearned Interest Revenue

Interest Revenue

1-Jan-14

Cash
Lease Receivable

ers Southern
ng lease; lessor
3-2014

zation Schedule

l Entries
Debit
Credit
$ 112,080.40
$
7,920
$ 120,000.00
$

15,000
$ 15,000.00

15,000
$

15,000

1,942

15,000

1,942

15,000

1,680

1,680

15,000

1,414

1,142

15,000

15,000

1,414

1,142

15,000

International Machines
Sales-type lease; lessor
2013
Lessor Cost
Fair Value of Asset
Rate
Time(quarters)
Factor(from Pv Tables)

$
$

Quarterly Lease Payment

85,000
112,080
0.02
8
7.472
15,000.00

Lease Amoritization Schedule

Rental Payment
1
2
3
4
5
6
7
8
Total

$
$
$
$
$
$
$
$
$

15,000.00
15,000.00
15,000.00
15,000.00
15,000.00
15,000.00
15,000.00
15,000.00
120,000.00

Effective Interest

$
$
$
$
$
$
$
$

1,942
1,680
1,414
1,142
865
582
294
7,920

Decrease in Balance
$
$
$
$
$
$
$
$
$

15,000
13,058
13,320
13,586
13,858
14,135
14,418
14,705
112,080

Outstanding Balance
$
112,080
$
97,080
$
84,022
$
70,702
$
57,116
$
43,258
$
29,123
$
14,705
$
(0)

Journal Entries
Date

Account
Lease Receivable
Sales Revenue
Unearned Interest Revenue
1-Jan-13

Cash
Lease Receivable

1-Apr-13

Cash
Lease Receivable
Unearned Interest Revenue
Interest Revenue

al Machines
ease; lessor
13

ation Schedule

Entries
Debit
Credit
$
120,000
$
112,080
$
7,920
$

15,000
$ 15,000.00

15,000
$

15,000

1,942

1,942

Georgia-Atlantic
Capital lease; lessee; balance sheet and income sta
2013
1
Present Value

3000001.598
Date
6/1/2013

Account
Lease Equipment
Lease Payable
Lease Payable
Cash

12/31/2013

Interest Exepense
Lease Payable
Cash
Depreciation Expense
Accumulated Deprecitation

2
Liability December 31,2013

Initial Balance
6/30/2013 Reduction
12/31/2013 Reduction
December 2013, net liability amount

Asset December 31,2013

Initial Balance
Accumulated Depreciation on December 31, 2013
Total Depreciation

3
Expense for 2013

6/30/2013 Interest Expense

12/31/2013 Interest Expense
12/31/2013 Total Interest Expense Accumulated
Depreciation Expense
Total Expense

Atlantic
et and income statement effects
13

December 31, 2013

Debit
Credit
$ 3,000,000
$ 3,000,000
$

$
$

562,907
$

562,907

562,907

121,855
441,052

$ 500,000.0
$ 500,000.0

$ 3,000,000
$ (562,907)
$ (441,052)
$ 1,996,041
$ 3,000,000
$ (500,000)
$ 2,500,000

0
121,855
$

121,855

621,855

$ 500,000.0