Lea:
Test1: A company has two options. It can buy an ast for cash at a cost of $5,710 or it can lea it by way of a finance lea. The terms of the lea are as follows.
(1) Primary period is for four years from 1 January 20X2 with a rental of $2,000 pa payable on 31 December each year.
(2) The le is required to pay all repair, maintenance and insurance costs as they ari.
(3) The interest rate implicit in the lea is 15%.
Answer:
The lea should be classified as a finance lea since the risks and rewards of ownership are transferred to the le. Therefore:
• A noncurrent ast is recorded at the fair value of $5,710 (subject to depreciation).
• Annual depreciation charge = 1/4 × $5,710 = $1,428.
• A liability is initially recorded at $5,710 but subquently reduced by the capital portion of the leasing payments.
• The total finance charge is $(8,000 – 5,710) = $2,290. The allocation of this to each rental payment and the conquent capital sum outstanding is calculated as follows:
YEAR OPENING BAL FINANCING COST(15%) SUBTOTAL RENTAL PAYMENT CLOSING BAL
20X2 5,710 856 6,566 2,000) 电话会议怎么开4,566
20X3 4,566 685 5,251 (2,000) 3,251
再见了母校
20X4 3,251 488 3,739 (2,000) 1,739
20X5 1,739 261 2,000 (2,000) 0
2,290 (8,000)
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• The finance charge each year is a constant periodic rate of return
(15%) on the remaining balance of liability, e.g. $856 is 15% of
$5,710, etc.
• The format above will be ud whenever the payments under a lea are made in arrears. If the payments are due in advance, the rental paid is deducted from the capital sum at the start of the period before the interest is calculated. Depreciation 5710/4=1427
Test 2: P Limited entered into a four year lea on 1 January 20X3 for a machine with a fair value of $69,738. Rentals are $20,000 pa payable in advance. P Limited is responsible for insurance and maintenance costs. The rate of interest implicit in the lea is 10%.
Show the allocation of the finance charges over the lea term on an actuarial basis and the statement of financial position and income statement extracts as at 31 December 20X3.happiness是什么意思英语
Answer:
Year Capitalb/f Leapayment Capital outstanding
Finance charge at 10%
Capital atyear end
confidence是什么意思20X3 69,738 (20,000) 49,738 4,974 54,712
20X4 54,712 (20,000) 34,712 3,471 38,183
20X5 38,183 (20,000) 18,183 1,818 20,000
20X6 20,000 (20,000) – – –
Statement of financial position extract $
Noncurrent asts
Finance lea ast
(69,738- 17,435)=52,303
Noncurrent liabilities
Amounts due under finance lea
(54,712 – 20,000)=34,712
Current liabilities
Amounts due under a finance lea 20,000
Income statement extract
Depreciation expen 17,435
Finance costs 4,974
Test3: A company is leasing an ast under an operating lea. The initial deposit is $1,000 on 1 January of year 1 followed by 4 annual payments in arrears of $1,000 each o
n 31 December of years 1, 2,3 and 4.
What are the charge to the income statement and any amount to appear in the statement of financial position at the end of year 1 of the lea?
Answer:
Income statement $
Operating lea rental
($5000 / 4 years)=1,250
Statement of financial positionbadge
Current asts:
Prepayments
($1,000 deposit / 4yrs × 3yrs)=750
Income statement
Leas
Test4: The following trial balance relates to Fryatt at 31 May 2007:
$ $
Revenue 630,000
Cost of sales 324,000
Distribution costs 19,800
Administration expens 15,600
三年级上册英语教案Loan interest paid 6,800
Property – cost 240,000
Property – depreciation at 1 June 2006 40,000
Plant and equipment –fortune500 cost 140,000
Plant and equipment – depreciation at 1 June 2006 48,600
Trade receivables 51,200
Inventory – 31 May 2007 19,600
Bank 4,300
Trade payables 35,200
Ordinary shares $1 25,000
Share premium 7,000
describesBank Loan (repayable 31 December 2010) 20,000
Retained earnings at 1 June 2006 15,500
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821,300 821,300
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The following notes are relevant:
(1) Plant and equipment is to be depreciated on the reducing balance basis at a rate of 20% per annum. The property cost includes land 汉堡包的英语at a cost of $60,000. The building is depreciated over 30 years on a straight line basis. All depreciation is charged to cost of sales.
