M9P2 - soal praktik PDF

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Summary

On December 31, 2018, Burke Corporation signed a 5-year, non-cancelable lease for a machine. The terms of the lease called for Burke to make annual payments of $8,668 at the beginning of each year, starting December 31, 2018. The machine has an estimated useful life of 6 years and a $5,000 unguarant...

Description

1. On December 31, 2018, Burke Corporation signed a 5-year, non-cancelable lease for a machine. The terms of the lease called for Burke to make annual payments of $8,668 at the beginning of each year, starting December 31, 2018. The machine has an estimated useful life of 6 years and a $5,000 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Burke uses the straight-line method of depreciation for all of its plant assets. Burke's incremental borrowing rate is 5%, and the lessor's implicit rate is unknown. Instructions a. Compute the present value of the lease payments. b. Prepare all necessary journal entries for Burke for this lease through December 31, 2019. n=5 annual payment = 8.668 incremental borrowing rate = 5% useful life = 6 th depresiasi = straight-line PV lease payment = 8.668 x 4,54595 = 39.404

Date 31/12/201 8 31/12/201 8 31/12/201 9 31/12/202 0 31/12/202 1 31/12/202 2

Lease payment

Dec 31 2018 Right-of-use assets Lease liability Lease liability Cash Dec 31 2019 Lease liability Interest expense Cash Depreciation Expense Righ-of-use assets

Interest on liability(5%)

Reduction of LL

Lease liability 39404

8668

0

8668

30736,73

8668

1536,8

7131,2

23605,56

8668

1180,3

7487,7

16117,84

8668

805,9

7862,1

8255,73

8668

412,8

8255,2

0,00

39.404 39.404 8.668 8.668

7131,2 1536,8 8668 7.881 7.881

2. Assume that on December 31, 2018, Stora Enso (FIN) signs a 10-year, non-cancelable lease agreement to lease a storage building from Sheffield Storage. The following information pertains to this lease agreement. 1. The agreement requires equal rental payments of €71,830 beginning on December 31, 2018. 2. The fair value of the building on December 31, 2018, is €525,176. 3. The building has an estimated economic life of 12 years, a guaranteed residual value of €10,000, and an expected residual value of €7,000. Stora Enso depreciates similar buildings using the straight-line method. 4. The lease is non-renewable. At the termination of the lease, the building reverts to the lessor. 5. Stora Enso's incremental borrowing rate is 8% per year. The lessor's implicit rate is not known by Stora Enso. Instructions : Prepare the journal entries on the lessee's books to reflect the signing of the lease agreement and to record the payments and expenses related to this lease for the years 2018, 2019, and 2020. Stora Enso's fiscal year-end is December 31. N = 10 th Annual payment = 71.830 Estimasi nilai ekonomi = 12 th Residual value = 10.000 Expected RV = 7.000 Depresiasi = straight-line IBR = 8% PV lease payment = 71.830 x 7,24689 = 520.544 PV RV = 3.000 x (1/(1+i)n) = 1.390 PV lease payment = 521.934

Date 31/12/201 8 31/12/201 8 31/12/201 9 31/12/202 0 31/12/202 1 31/12/202 2 31/12/202 3 31/12/202 4 31/12/202 5 31/12/202 6 31/12/202 7 31/12/202 7

Lease payment

31 Dec 2018 Right-of-use Asset

Interest on liability(8%)

Reduction of LL

Lease liability 521933,54

71830

0

71830

450103,54

71830

36008,3

35821,7

414281,8

71830

33142,5

38687,5

375594,4

71830

30047,5

41782,5

333811,9

71830

26705,0

45125,0

288686,9

71830

23094,9

48735,1

239951,8

71830

19196,1

52633,9

187318,0

71830

14985,4

56844,6

130473,4

71830

10437,9

61392,1

69081,3

71830

5526,5

66303,5

2777,8

3000

222,2

2777,8

0,0

521.934

Lease liability Lease liability Cash

521.934 71.830 71.830

31 Dec 2019 Interest expense 36.008 Lease liability 35.822 Cash 71.830 Depreciation expense 52.193 Right-of-use asset 52.193 31 Dec 2020 Interest expense 33.143 Lease liability 38.687 Cash 71.830 Depreciation expense 52.193 Right-of-use asset 52.193 31 Dec 2027 Lease liability Cash

3.000 3.000

3. The following facts pertain to a noncancelable lease agreement between Mooney Leasing and Choi Group, a lessee (amounts in thousands).

Instructions (Round all numbers to the nearest yen) a. Prepare a lease amortization schedule for Choi for the 5-year lease term. b. Prepare the journal entries on the lessee's books to reflect the signing of the lease agreement and to record the payments and expenses related to this lease for the years 2019 and 2020. Choi's annual accounting period ends on December 31. Reversing entries are used by Choi.

N Annual payment Implicit rate Residual value Umur ekonomis

= 5 th = 20.471,94 = 8% = 4.000 = 10 th

PV lease payment = 20.471,94 x 4,31213 PV RV = 4.000 x 0,68058 PV lease payment May 1, 2019 ROU assets Lease liability Lease liability Cash

91.000 91.000 20.471,94 20.471,94

Dec 31, 2019 Interest expense (8/12*8%*(91.000-20.471,94)) Lease liability Depreciation expense (91.000/10*8/12) Rou Assets Jan 1, 2020 Lease liability Interest expense May 1, 2020 Interest expense Lease liability

= 88.277,67 = 2.722,32 = 91.000

3.761,49 3.761,49 5.642,24 14.829,70

3.761,49 3.761,49 6.066,67 6.066,67

Cash 31 Dec 2020 Depreciation expense Rou assets Interest expense Lease liability

20.471,94

9.100 9.100 2.970,58 2.970,58...