ABC limited leased equipment on 1 January 2022. The lease provided for four annual lease...
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ABC limited leased equipment on January The lease provided for four annual lease rentals of ksh million payable in advance. The equipment has a useful life of four years and a nil residual value. The lessee incurred sh million in legal cost to complete the lease agreement. The cash selling price of the equipment was sh million. The interest rate implicit was per annum. Required; iPrepare the finance lease obligation amortization schedule marks iiPrepare journal entries to record the transaction for the year ended December marks
ABC limited leased equipment on January The lease provided for four annual lease rentals of ksh million payable in advance. The equipment has a useful life of four years and a nil residual value. The lessee incurred sh million in legal cost to complete the lease agreement. The cash selling price of the equipment was sh million. The interest rate implicit was per annum.
Required;
iPrepare the finance lease obligation amortization schedule marks
iiPrepare journal entries to record the transaction for the year ended December
marks
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