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Chapter 21 Lease Answer Problems

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Chapter 21 Lease Answer Problems
CHAPTER 21 ACCOUNTING FOR LEASES

CONTENT ANALYSIS OF EXERCISES AND PROBLEMS Time Range (minutes) 5-10

Number E21-1

Content Operating Lease. (Easy) Annual rental payments, no renewable option clause, executory costs. Lessee's journal entries to record agreement, payments, expenses. Capital Lease. (Moderate) Calculation of rental payments made at end of year. Table summarizing lease payments, interest expense. Journal entries. IFRS differences. Capital Lease. (Moderate) Payments made at beginning of year. Table summarizing lease payments, interest expense. Journal entries. Direct Financing Lease. (Moderate) Calculation of rental receipts, made at end of year. Table summarizing rental receipts, interest revenue. Journal entries. Direct Financing Lease. (Easy) Journal entries to record contract, first rental receipt. Direct Financing Lease / Capital Lease. (Moderate) Table summarizing lease and interest payments. Journal entries for lessor and lessee. Sales-Type Lease. (Moderate) Payments made at end of year. Calculation of selling price (fair value). Table summarizing lease receipts, interest revenue. Journal entries. Sales-Type Lease. (Moderate) Payments made at beginning of year. Calculation of selling price (fair value). Table summarizing lease receipts, interest revenue. Journal entries. Sales-Type Lease / Capital Lease. (Moderate) Computation of lease payments. Journal entries for lessor and lessee. Operating Lease / Sales-Type Lease. (Moderate) Accounted for as operating, should have been sales-type. Computation of effect on net income. Operating Lease. (Easy) Computation of income derived from lease by lessor, amount of rent expense for lessee.

E21-2

15-25

E21-3

10-15

E21-4

10-15

E21-5 E21-6

5-10 10-15

E21-7

10-15

E21-8

10-15

E21-9 E21-10

10-15 10-20

E21-11

10-15

21-1

Number E21-12

Content Determining Type of Lease. (Moderate) Title passes at leaseend, collectibility reasonably assured, no
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