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

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

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Reference no: EM133148273

Question - The following information pertains to a leased contract entered into by the entity on January 1, 2019:

Lease Term 4 years

Useful Life 5 years

Useful Life of the leased asset 20 years

Annual renal at yearend P1,000,000

Implicit rate 10%

The company has guaranteed a P200,000 residual value on December 31, 2022.

Required -

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

b. Prepare the amortization table.

c. Prepare the necessary entry on 2019 and 2022.

Reference no: EM133148273

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

Reference no: EM133148273

Reference no: EM133148273

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