Connect blems Help Save & Exi Chec Required information The following informatio

Question

Connect blems Help Save & Exi Chec Required information The following information applies to the questions displayed below Rogers Company signs a five-year capital lease with Packer Company for office equipment. The annual year-end lease payment is $14,000, and the interest rate is 9%.CableBI. Table 2, Table 3, and TableB4) (Use appropriate factor(s) from the tables provided.) 1. Complete the below table to calculate the present value of Rogers's five-year lease payments. Payment PV Factor of lease

Explanation / Answer

Solution 1:

Annual lease payment = $14,000

interest rate = 9%

Lease period = 5 years

Present value of lease payment = $14,000 * Cumulative PV factor at 9% for 5 periods

= $14,000 * 3.889651 = $54,455

Solution 2:

Solution 3:

Solution 4:

Journal Entries - Rogers Company Event Particulars Debit Credit 1 Leased Equipment Dr $54,455.00                To Lease liability $54,455.00 (To record capitla lease of equipment)

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