Wildhorse Limited has signed a lease agreement with Lantus Corp. to lease equipment with an expected lifespan of eight years, no estimated salvage value, and a cost to Lantus, the lessor of $199,000. The terms of the lease are as follows: ● The lease term begins on January 1, 2019, and runs for 5 years. ● The lease requires payments of $45,359 at the beginning of each year starting January 1, 2019. ● At the end of the lease term, the equipment is to be returned to the lessor. ● Lantus’ implied interest rate is 7%, while Wildhorse’s borrowing rate is 8%. Wildhorse uses straight-line depreciation for similar equipment. The year-end for both companies is December 31. Assume that both companies follow ASPE. (a)Determine the present value of the minimum lease payments Ans 199,000 B.) Prepare Wildhorse’s lease amortization schedule using the effective interest method. (Round answers to 0 decimal places, e.g. 5,275.) Date Payment Interest Principal Balance January 1, 2019 $ 199000 January 1, 2019 $ 45359 $ $ January 1, 2020 45359 January 1, 2021 45359 January 1, 2022 45359 January 1, 2023 45359 $ 226795 $ $ Please help with this question part B show solution in steps for excel w/ formula thank you in advance

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 3E: Lessee Accounting Issues Sax Company signs a lease agreement dated January 1, 2019, that provides...

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(a)Determine the present value of the minimum lease payments

Ans 199,000

B.) Prepare Wildhorse’s lease amortization schedule using the effective interest method. (Round answers to 0 decimal places, e.g. 5,275.)

Date	Payment	Interest	Principal	Balance
January 1, 2019				$ 199000
January 1, 2019	$ 45359	$	$
January 1, 2020	45359
January 1, 2021	45359
January 1, 2022	45359
January 1, 2023	45359
	$ 226795	$	$

Please help with this question part B show solution in steps for excel w/ formula thank you in advance

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●		The lease term begins on January 1, 2019, and runs for 5 years.
●		The lease requires payments of $45,359 at the beginning of each year starting January 1, 2019.
●		At the end of the lease term, the equipment is to be returned to the lessor.
●		Lantus’ implied interest rate is 7%, while Wildhorse’s borrowing rate is 8%. Wildhorse uses straight-line depreciation for similar equipment. The year-end for both companies is December 31.