# ACCT19062 Assignment Part B 代写

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• ACCT19062 Assignment Part B
Assessment task 2: Assignment Part B
Due date:  Friday of Week 10 [11:45pm [AEST] 29 January 2016]  ASSESSMENT
Weighting:
Topic:
20%
Lease  B
Objectives
This assessment item relates to the following course learning outcomes:
l  Interpret the technical requirements and conceptual aspects of selected
accounting standards that address key issues in financial reporting
l  Apply relevant accounting pronouncements and professional judgment to solve
routine accounting problems
ACCT19062 Assignment Part B
Question 1
On 1 July 2012, Bird Ltd entered into a lease arrangement for the lease of equipment
from Nest Ltd. The equipment had a fair value of \$115 000 on 1 July 2012. The
equipment had a useful life of 6 years, and both companies used straight-line
depreciation. The lease is a finance lease. The following information relates to the
lease arrangement:
l  The lease term is 5 years, with the equipment being returned at the end of
this term.
l  Annual lease payments of \$33 000 are made on 30 June of each year, the
first being made on the 30 June 2013. The annual lease payment includes
an amount of \$3 000 to cover annual maintenance.
l  The estimated residual value of the equipment at the end of the lease term
is \$9 000, while Bird Ltd only guarantees \$5 000 of the residual value.
l  With an implicit interest rate of 10%, the present value of an annuity of
\$1, for 5 payments, is 3.7098, and the present value of a \$1 in 5 years
time is 0.6209.
2
Required:
a) Calculate the present value of minimum lease payments for Bird Ltd (round to
the nearest dollar, show all working out).
b) Prepare the journal entry(s) to record the lease in the books of Bird Ltd for 1
July 2012.
c) Calculate annual depreciation on the leased equipment that Bird Ltd will have
to record (round to the nearest dollar, show all working out). ?
3
Question 2
Cliff Ltd entered into an agreement on 1 July 2014 to lease a piece of equipment from
Bridge Ltd. The fair value of the equipment on 1 July 2014 was \$31 000. At the
inception of the lease, the following terms were determined:
Lease term 3 years
Economic life of equipment 4 years
Annual rental payments
Residual value of equipment at end of lease term \$6 000
Residual value guaranteed by Cliff Ltd \$4 000
Interest rate implicit in the lease 9%
The lease is a finance lease and Cliff Ltd will return the equipment to Bridge Ltd at
the end of the lease term. The annual rental payments include \$2 000 to reimburse
Bridge Ltd for the maintenance costs it will incur on behalf of Cliff Ltd.
Required:
(a) Calculate the present value of minimum lease payments.
(b) Prepare journal entries in the books of Cliff Ltd to account for transactions
occurring on 1 July 2014, 30 June 2015 and 1 July 2015.
Period or
number of
payments
PV of \$1 at 9%
PV of an annuity of \$1
per period for n periods
at 9%
2 0.8417 1.7591
3 0.7722 2.5313
4 0.7084 3.2397
ACCT19062 Assignment Part B