On 1 January 2018, Venus Ltd leased a new machinery from Global Ltd for three years. Annual payments of $32,000 are payable in arrears, the first instalment being due on

On 1 January 2018, Venus Ltd leased a new machinery from Global Ltd for three years. Annual payments of $32,000 are payable in arrears, the first instalment being due on 31 December 2018. The machinery costs $88,900 and the estimated economic useful life of the asset is four years with nil residual value.  The interest rate implicit in the lease is 5%. Complete the journal entries in the following table. Do not enter $ sign 2018 DR ($) CR ($) 1. To record the lease contract Right-of-use Asset – Machinery (B/S) Blank 16 Lease payable (B/S) Blank 17 2. To record the first lease payment Interest expense  (P/L) Blank 18 Cash Blank 19 Lease payable (B/S) Blank 20 Cash Blank 21 3. To depreciation at the end of first year Blank 22 Depreciation expense (P/L) Blank 23 Accumulated depreciation (B/S)

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