The terms of the lease are as follows: Cash price of the equipment K 12 000 Repayments payable every six months K 1 300 Term of the lease 5 years Effective rate of interest 6 % Final year, 2 semester reduction in In-substance fixed lease payments K 240 help with solution
You have been approached by the director of Mschili Quaries, who have just signed a contract with Haul pack to lease a piece of equipment, for advice. The terms of the lease are as follows: Cash price of the equipment K 12 000 Repayments payable every six months K 1 300 Term of the lease 5 years Effective rate of interest 6 % Final year, 2 semester reduction in In-substance fixed lease payments K 240 Mschili Quarries entered into a non cancellable lease agreement with Haulpack Plc. Required: 1. Prepare the following to reflect measurement and recognition in Mschili Quarries:
a) Lease Liability Repayment Schedule for the period of the lease b) Amounts to be reported on the Statement of Profit or Loss and Other comprehensive Income (after two years) c) Amounts to be reported in the Statement of Financial Position (after two years)
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ReplyDeleteThe terms of the lease are as follows:
ReplyDeleteCash price of the equipment K 12 000
Repayments payable every six months K 1 300 Term of the lease 5 years Effective rate of interest 6 %
Final year, 2 semester reduction in In-substance fixed lease payments K 240 help with solution
You have been approached by the director of Mschili Quaries, who have just signed a contract with Haul pack to lease a piece of equipment, for advice. The terms of the lease are as follows:
ReplyDeleteCash price of the equipment K 12 000
Repayments payable every six months K 1 300 Term of the lease 5 years Effective rate of interest 6 %
Final year, 2 semester reduction in In-substance fixed lease payments K 240
Mschili Quarries entered into a non cancellable lease agreement with Haulpack Plc.
Required:
1. Prepare the following to reflect measurement and recognition in Mschili Quarries:
a) Lease Liability Repayment Schedule for the period of the lease
b) Amounts to be reported on the Statement of Profit or Loss and Other comprehensive Income (after two years)
c) Amounts to be reported in the Statement of Financial Position (after two years)
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Updated version*
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