On December 31, 2020, Roe Company leased a machine from Colt Company for a five-year period Equal annual payments under the lease P1,050,000 including P50,000 annual executory cost and are due on December 31 of each year. The first payment was made on December 31, 2020, and the second payment was made on December 31, 2021. The five lease payments are discounted at 10% over the lease term. The present value of minimum lease payments at the inception of the lease and before the first annual payment was P4,170.000.On December 31, 2021, what amount should be reported as lease liability? Instruction:Write your answer without a peso sign and without commas.Please follow the sample answer: 1000000On December 31, 2020, Roe Company leased a machine from ColtCompany for a five-year period Equal annual payments under the leaseP1,050,000 including P50,000 annual executory cost and are due onDecember 31 of each year. The first payment was made on December 31,2020, and the second payment was made on December 31, 2021. The fivelease payments are discounted at 10% over the lease term. The presentvalue of minimum lease payments at the inception of the lease and beforethe first annual payment was P4,170.000.On December 31, 2021, whatamount should be reported as lease liability?

Lease liability :— It is the obligation of making payment under the lease term by lesse to lessor.…

Answered: On December 31, 2020, Roe Company…

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 10MC: On August 1, 2019, Kern Company leased a machine to Day Company for a 6-year period requiring...

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On December 31, 2020, Roe Company leased a machine from Colt Company for a five-year period Equal annual payments under the lease P1,050,000 including P50,000 annual executory cost and are due on December 31 of each year. The first payment was made on December 31, 2020, and the second payment was made on December 31, 2021. The five lease payments are discounted at 10% over the lease term. The present value of minimum lease payments at the inception of the lease and before the first annual payment was P4,170.000.On December 31, 2021, what amount should be reported as lease liability?

Instruction:
Write your answer without a peso sign and without commas.
Please follow the sample answer: 1000000
On December 31, 2020, Roe Company leased a machine from Colt
Company for a five-year period Equal annual payments under the lease
P1,050,000 including P50,000 annual executory cost and are due on
December 31 of each year. The first payment was made on December 31,
2020, and the second payment was made on December 31, 2021. The five
lease payments are discounted at 10% over the lease term. The present
value of minimum lease payments at the inception of the lease and before
the first annual payment was P4,170.000.On December 31, 2021, what
amount should be reported as lease liability?

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