Professional Documents
Culture Documents
00 Fair Value
8.0% Interest Rate
48 Term in Months
$690.00 Lease Payment per Month
$287.19 Executory Costs (Maintenance Contract)
07/01/06 Lease Start Date
Lease
Fair Value/PF
Payment
of Min Lease
Date
Payments
07/01/06
$16,500.00
16,207.19
15,912.43
15,615.70
15,317.00
15,016.30
14,713.60
14,408.88
14,102.13
13,793.33
13,482.48
13,169.55
07/01/07
12,854.54
12,537.42
12,218.20
11,896.84
11,573.34
11,247.69
10,919.86
10,589.85
10,257.64
9,923.22
9,586.56
9,247.66
07/01/08
8,906.50
8,563.07
8,217.35
7,869.32
7,518.97
7,166.29
6,811.25
6,453.85
6,094.07
5,731.88
5,367.29
5,000.26
07/01/09
4,630.78
4,258.85
3,884.43
3,507.51
3,128.09
2,746.13
2,361.63
1,974.56
1,584.92
1,192.67
797.81
400.32
Total
Total
Lease
Payment
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
690.00
Executory
Costs
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
287.19
Net
Lease
Payment
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.81
402.99
Interest
110.00
108.05
106.08
104.10
102.11
100.11
98.09
96.06
94.01
91.96
89.88
87.80
85.70
83.58
81.45
79.31
77.16
74.98
72.80
70.60
68.38
66.15
63.91
61.65
59.38
57.09
54.78
52.46
50.13
47.78
45.41
43.03
40.63
38.21
35.78
33.34
30.87
28.39
25.90
23.38
20.85
18.31
15.74
13.16
10.57
7.95
5.32
2.67
Principal
292.81
294.76
296.73
298.71
300.70
302.70
304.72
306.75
308.80
310.85
312.93
315.01
317.11
319.23
321.36
323.50
325.65
327.83
330.01
332.21
334.43
336.66
338.90
341.16
343.43
345.72
348.03
350.35
352.68
355.03
357.40
359.78
362.18
364.60
367.03
369.47
371.94
374.42
376.91
379.43
381.96
384.50
387.07
389.65
392.24
394.86
397.49
400.32
33,120.00
13,785.12
19,335.06
2,835.06
16,500.00
Fair Value/PF
of Min Lease
Payments
16,207.19
15,912.43
15,615.70
15,317.00
15,016.30
14,713.60
14,408.88
14,102.13
13,793.33
13,482.48
13,169.55
12,854.54
12,537.42
12,218.20
11,896.84
11,573.34
11,247.69
10,919.86
10,589.85
10,257.64
9,923.22
9,586.56
9,247.66
8,906.50
8,563.07
8,217.35
7,869.32
7,518.97
7,166.29
6,811.25
6,453.85
6,094.07
5,731.88
5,367.29
5,000.26
4,630.78
4,258.85
3,884.43
3,507.51
3,128.09
2,746.13
2,361.63
1,974.56
1,584.92
1,192.67
797.81
400.32
0.00
230349181.xls.ms_office
General Accounting
The following entries are made if the capital lease is recorded in a non-proprietary fund.
Non-proprietary funds include all funds except auxiliary enterprises and service departments
(3)
(1)
(2)
(4)
(5)
(6)
A8011 - Equipment
690.00
16,500.00
16,500.00
(2)
(4)
(5)
(6)
A8011 - Equipment
16,500.00
196.43
196.43
3,645.46
3,645.46
16,500.00
16,500.00
Amounts (for
illustrative
purposes only)
Example
(1)
(2)
(3)
(4)
(5)
(6)
Capitalize Asset in Fixed Assets at the present value of the minimum lease payments or the fair value of
the leased property, which ever is less.
Reclassify the equity (recorded in Banner Fixed Assets when capitalizing the lease) to a capital lease
liability
Make monthly lease payments of principal, interest and executory costs
Record depreciation by running monthly depreciation process in Banner Fixed Assets
Prepare a JV to record the year end adjustment to Capital Lease Payable for payments made during the
year
Remove asset at lease end when institution does not retain ownership of asset
16,500.00
16,500.00
690.00
196.43
3,645.46
16,500.00
Page 2 of 3
230349181.xls.ms_office
General Accounting
The following entries are made if the capital lease is recorded in a proprietary fund.
Proprietary funds pertain to Auxiliary Enterprises (Fund type 2x) and Service Departments (Fund Type 13).
(1)
(2)
A8011 - Equipment
16,500.00
(2)
(3)
(4)
(5)
292.81 (3)
287.19
110.00
196.43
16,500.00
16,500.00
690.00
(4)
196.43
(5)
A8011 - Equipment
16,500.00
16,500.00
Amounts (for
illustrative
purposes only)
Example
(1)
Capitalize Asset in Fixed Assets at the present value of the minimum lease payments or the fair value of
the leased property, which ever is less.
16,500.00
(2)
Reclassify the equity (recorded in Banner Fixed Assets when capitalizing the lease) to a capital lease
liability
16,500.00
(3)
(4)
(5)
690.00
196.43
16,500.00
Page 3 of 3