,
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
15,000.00
$
$
$
$
$
$
$
$
$
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
15,000.00
$
$
$
$
$
$
$
$
$
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
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)
$
$
85,000
112,080
0.02
8
7.472
15,000.00
$
$
$
$
$
$
$
$
$
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
Initial Balance
Accumulated Depreciation on December 31, 2013
Total Depreciation
3
Expense for 2013
Atlantic
et and income statement effects
13
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