Solution-Compute the lease liability and right-of-use asset

Compute the lease liability and right-of-use asset

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Reference no: EM133133102

Question - The company leased a warehouse on January 1, 2019 with the following information: Annual fixed payment paid at the end of the year P600,000 Cost of restoring the asset required by the contract 400,000 Payment to lessor to obtain the lease 224,000 Unguaranteed residual value 200,000 Annual executory cost 50,000 Lease tern 6 years Useful life of the asset 8 years Implicit interest rate 10%.

Required -

a. Compute the lease liability and right-of-use asset.

b. Prepare the amortization table.

c. Prepare the necessary entry in the first year and the final year.

Reference no: EM133133102

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Compute the lease liability and right-of-use asset

Reference no: EM133133102

Reference no: EM133133102

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