Prepare the required journal entries at june

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Martinez Inc. entered into a ?ve-year lease of equipment from Matusek Inc on July 1. 2021. The equipment has an estimated economic life of eight years and fair value of $290,000. The present value of the lease payments amounts to $250,103. The lease does not have a bargain purchase option and ownership does not transfer to Martinez at the end of the lease.

Problem 1: Prepare the company's partial balance sheet (liability section ONLY) on June 30,

Problem 2: Prepare the required journal entries at June 30, 2021 (the company's year end) and the July 1, 2022 lease payment using IFRS rules. (Assume straightline depreciation on the equipment under lease).

Problem 3: Discuss how the company would account for this lease if the company followed ASPE. Explain your answer using the rules .

Reference no: EM133000851

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