ques 2

to determine lease liability the lessee should only incluse the present
value of gauranteed residual value probable to be owed under lease agreement
since the expected reisdual value is same as gauranteed residual value
no amounts are probable
so the lease liability is therefore

PV of monthly payment of $330 for 50 months 14640

Ques 3

debit credit

Right of use asset 14640

lease liability 14640

ques 5-second month lease payment

debit credit
Lease liability 258
interest expense 72
((14640-330)*0.5%)
Cash 330

ques 6
debit credit
Amortization expense $ 293
Right of use asset $ 293
(14640/50 months)

ques 7
because the expected residual value(500) is less
than the gauranteed residual value(1020) the present
value of lease payment is calculated as follows

PV of monthly payment of $330 for 50 months 14640

PV of residual value[(1020-500)*0.77929] 405
Present value of lease payment 15045
ques 2

to determine lease liability the lessee should only incluse the present
value of gauranteed residual value probable to be owed under lease agreement
since the expected reisdual value is same as gauranteed residual value
no amounts are probable
so the lease liability is therefore

PV of monthly payment of $310 for 50 months 13753

Ques 3
ques 5-second month lease payment
debit credit
Lease liability 243
interest expense 67
((13753-310)*0.5%)
Cash 310

ques 6
debit credit
Amortization expense 275
Right of use asset 275
(13753/50 months)

ques 7
because the expected residual value(500) is less
than the gauranteed residual value(1180) the present
value of lease payment is calculated as follows

PV of monthly payment of $310 for 50 months 13753

PV of residual value[(1030-500)*0.77929] 413
Present value of lease payment 14166
ques 1
this is finance lease because

1)the lease is greater than (50/60 months) 75% of the economic life of lease aset

2)
the present values of the lease payments for purposes of classifying the lease
is greater than 90% of fair value ($10000)

PV of monthly payment of $200 for 50 months 8873

PV of residual value 920
Present value of lease payment 9793

ques 2

to determine lease liability the lessee should only incluse the present
value of gauranteed residual value probable to be owed under lease agreement
since the expected reisdual value is same as gauranteed residual value
no amounts are probable
so the lease liability is therefore

PV of monthly payment of $200 for 50 months 8873

Ques 3
debit credit
Right of use asset 8873
lease liability 8873

ques 4

debit credit
Lease liability 200
Cash 200

ques 5
debit credit
Lease liability 157
interest expense 43
((8873-200)*0.5%)
Cash 200

ques 6
debit credit
Amortization expense 177
 Right of use asset 177
(8873/50 months)

ques 7
because the expected residual value(500) is less
than the gauranteed residual value(1180) the present
value of lease payment is calculated as follows

PV of monthly payment of $200 for 50 months 8873

PV of residual value[(1180-500)*0.77929] 530
Present value of lease payment 9403