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Prepare amortization table and lease payments

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Reference no: EM133014495

Question - On September 1, 2018 PT CINARA leased equipment from PT KINTAMANI for a period of 5 years, irrevocably. Annual lease payments of IDR 225,953,880 every October 1, starting October 1, 2018. It is estimated that the company will pay IDR 48,000,000 for a residual value that is less than guaranteed. The economic life of the equipment is 8 years, the implicit interest rate is 10%.

Required -

a. Calculate the capitalized value.

b. Prepare amortization table and lease payments.

c. Present the journals made by PT CINARA in 2018 and 2019, as well as at the end of the lease period.

Reference no: EM133014495

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