eyPLUS kieso, Intermediate Accounting, Ile, Volume 2 INTERMEDIATE ACCOUNTING II

Question

eyPLUS kieso, Intermediate Accounting, Ile, Volume 2 INTERMEDIATE ACCOUNTING II (NCCT 316) est> Open Assignment Brief Exercise 20-20 20 Prehlem Sandhill Corp. agreed to lease proparty from Sunland Corp. ffective January 1, 2017, for an arnual payment of $25,348, beginning January 1, 2017. The property is made up of adwith a far vot e of $1 10 000 and at ost rer 11, tuld ng wen afair val f 7600 and sett et ieas with no res a ial e m e o c int est au 7.5% the lease term is 21 yuara, and tte to the property trasferred to Sandhil,theend of the lease term. Prepare the required ertries made by Sandhill Corp, on January 1, 2017 and at its vear end of December 31, 2017.Both Sandhil and Sunland upe ASPE. (Credit account rities are automatically indented when the amount is entered. Do mot indent manuaily. If no entry is required, select "No Estry" for the account bitles and ontar o for the amounts. Round answers to 0 decimaí places, e.g. s,a7s.) Date Account Titioes and Explanation Jan. 2 To recoré nceptoon of leas To record frst lease paryment Ta recard accrued incter estl Type here to search

Explanation / Answer

Lease amoritization schedule Year Annual Payment Factor@7.5% 0 25548 1 25548 0 1 25548 0.930232558 23765.5814 1782.418605 2 25548 0.865332612 22107.51758 3440.482423 3 25548 0.80496057 20565.13263 4982.86737 4 25548 0.74880053 19130.35593 6417.644065 5 25548 0.696558632 17795.67994 7752.320061 6 25548 0.647961518 16554.12087 8993.879126 7 25548 0.602754901 15399.18221 10148.81779 8 25548 0.560702233 14324.82066 11223.17934 9 25548 0.521583473 13325.41457 12222.58543 10 25548 0.485193928 12395.73448 13152.26552 11 25548 0.451343189 11530.9158 14017.0842 12 25548 0.419854129 10726.4333 14821.5667 13 25548 0.390561981 9978.077487 15569.92251 14 25548 0.363313471 9281.932546 16266.06745 15 25548 0.337966019 8634.355857 16913.64414 16 25548 0.314386995 8031.958936 17516.04106 17 25548 0.292453018 7471.589708 18076.41029 18 25548 0.272049319 6950.316008 18597.68399 19 25548 0.253069134 6465.41024 19082.58976 20 25548 0.235413148 6014.335107 19533.66489 21 Total 285996.8652 Amount in $ Date General Journal Debit Credit 2017 Land 110000 Jan-01 Building 176000 Leased Liability 286000 To record the inception of Lease Jan-01 Lease Liability 25548 Cash 25548 To record the First Lease Payment Dec-31 Interest Expense 1782.42 Leased Liability 1782.42 To record the accrued interest Dec-31 Depreciation expense-building 8380.95 Accumulated depreciation on building 8380.95 To record depreciation

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