accounting for leases

mike1360

请问有谁懂accounting for leases啊？

0800EggPain

会计

mike1360

恩，你能帮我看到题吗，我不确定我做的对不对

我行我素我酷

fiance lease or operating lease?

mike1360

Simons Company leased a machine from an established machine dealer, Machine Guarantee Limited. The dealer acquired the machine at a cost of $180,000. The cost of repairing the machine to make it suitable for another owners will be $40,000. Simons Company plans to keep the machine after the lease but has not made any commitment to the lessor to purchase it. The terms of the lease are as follows:

•        Date of entering lease: July 1, 2011
•        Duration of lease: 4 years
•        Life of leased asset: 5 years, after which it will have no salvage value
•        Lease payments: $100,000 at the end of each year
•        Interest rate implicit in the lease: 10%
•        Unguaranteed residual: $50,000
•        Fair value of truck at inception of the lease: $351, 140


Prepare the journal entries to account for the lease transaction in the books of the lessee,         Simons Limited.

1 June 2011        Dr     leased machinery         316,990
                         Cr     leased liability               316,990
Recording the leased asset and the lease liability at start of lease term


1 June 2011        Dr     Executory expenses         180,000
                        Cr    Cash                        180,000
Recording the payment of executory costs


31 May 2012         Dr    Interest expense         31699
                   Dr    Lease liability          68301               
                         Cr         Cash                  100,000
Recording the lease payment of 100,000

mike1360

我觉得是finance lease，虽然题里没有Non-cancellability.但是 the lease term is for 80 percent of the economic life of the asset。 所以我觉得应该是finance lease

mike1360

但是我不决定，如果他这里没有salvage value，那就不用算depreciation了吗？

我行我素我酷

mike1360 发表于 2013-5-7 11:30
但是我不决定，如果他这里没有salvage value，那就不用算depreciation了吗？

as you know n= 4 , pmt= 100000 fv = 0. 先算出present value of lease payment, then use pv/4 = depreciation per year. the book value deline each year by depreciation expense. then you will get the lease caculation. 具体没有算，我是学金融的，略知一二，不对别怨我。

mike1360

。。。我觉得finance的应该跟accounting不一样

mike1360

谢谢你了哦哦哦哦

myself2662

mike1360 发表于 2013-5-7 11:29
我觉得是finance lease，虽然题里没有Non-cancellability.但是 the lease term is for 80 percent of the e ...

The accounting treatment is Finance Lease otherwise, no leased assets will be recognised on the balance sheet. Leased asset value is based on PV =(10%,4,100000,,0) as lease payment is at the end of year.

我行我素我酷

mike1360 发表于 2013-5-7 12:05
。。。我觉得finance的应该跟accounting不一样

基本方法应该差不多少，accounting比较繁琐，每个步骤都要写出了，finance比较广泛，其中一小部分，金融这个叫做，financial reporting analysis. 看看做好的账，分析下公司的报表,比较有缺点。有时候也做这些东西。

Dracoz

mike1360 发表于 2013-5-7 11:27
Simons Company leased a machine from an established machine dealer, Machine Guarantee Limited. The d ...

Hint : Simons Company plans to keep the machine after the lease but has not made "any commitment" to the lessor to purchase it.

mike1360

Dracoz 发表于 2013-5-7 14:13
Hint : Simons Company plans to keep the machine after the lease but has not made "any commitment"  ...

我懂这个，也就是说the risks and rewards of the asset haven’t been transferred to the lessee.所以这里不能确定他是finance lease，但后面我算出the lease term is for 80 percent of the economic life of the asset。所以我认为他是finance lease。 我希望谁能帮我看下我做的journal entries是否正确

pooky

Finance Lease: 1) Unguaranteed Value 50K, meets the criteria of finance lease defined in IAS17. 2) Sale-type of lease as current value $351K exceed lessor's costs (180K + 40K)

Journal in Lessee:

01/07/2011 Dr Leased Equipment $351K
                        Cr Lease Liability $351K
                 Dr Lease Liability $100K
                        Cr Cash $100K
30/06/2012 Dr Interest Expense $25,114
                      Lease liability $74886
                        Cr Cash                 $100K
                  Dr Depn Exp $70,228
                        Cr Acc Depn $70,228

mike1360

pooky 发表于 2013-5-7 15:53
Finance Lease: 1) Unguaranteed Value 50K, meets the criteria of finance lease defined in IAS17. 2) S ...

你好，我不知道你这些是怎么来的，麻烦你能给我讲下吗？怎么跟我的都不一样

mike1360

pooky 发表于 2013-5-7 15:53
Finance Lease: 1) Unguaranteed Value 50K, meets the criteria of finance lease defined in IAS17. 2) S ...

你有QQ吗？我把我做的步骤给你看

pooky

Sorry mate, I am working, just saw your question, and did it in my way. I do not have QQ, no Chinese typing.

The asset has unguaranteed value, it should be clarified as finance lease for lessor has options to sell to the lessee. It's in IAS17. Is this Uni Exam question? If I were the examiner, I will ask journal entries for lessor as well.

Type down working here, I take a look when I free

mike1360

pooky 发表于 2013-5-7 16:09
Sorry mate, I am working, just saw your question, and did it in my way. I do not have QQ, no Chinese ...

这是学校的作业，也要求 journal entries for lessor。我按照书上来的。我照片传不上来。你有邮箱吗？我email给你

pooky

Sorry, no email given. Type your work here.
I am nearly off. Don't have much time this.
We have many qualified accountant in this forum, you may ask others for help.
Trust yourself, if you believe your work is right, don't give up.
Good luck for your school assignment.