In the long-term liabilities section of its balance sheet at December 31, 2016, Welington Company reported a lease obligation of P750,000, net of current portion of P13,636. Payments of P90,000 were made on both January 2, 2017 and January 2, 2018. Welington’s incremental borrowing rate on the date of lease was 11% and the lessor’s implicit rate, which was known to Welington, was 10%. In its December 31, 2018 balance sheet, what amount should Welington report as capital lease obligation, net of current portion? Round amounts to the nearest peso.

In the long-term liabilities section of its balance sheet at December 31, 2016, Welington Company reported a lease obligation of P750,000, net of current portion of P13,636. Payments of P90,000 were made on both January 2, 2017 and January 2, 2018. Welington’s incremental borrowing rate on the date of lease was 11% and the lessor’s implicit rate, which was known to Welington, was 10%. In its December 31, 2018 balance sheet, what amount should Welington report as capital lease obligation, net of current portion? Round amounts to the nearest peso.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter20: Accounting For Leases

Section: Chapter Questions

Problem 5RE: Use the information in RE20-3. Prepare the journal entries that Garvey Company would make in the...

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