Majdah Sdn Bhd prepares financial statements to 31 December each year. On 1 July 2022,Majdah Holding Sdn Bhd began to lease a machine. The lease gave the company the soleright to direct the use of the machine and receive all the economic benefits arising from its use.The lease was for a five-year term, with annual rentals of RM200,000 being payable inadvance.The first rental was paid in 1 July 2022 and the final rental is due for payment on 1 July 2026.The total estimated useful life of the machine on 1 July 2022 was ten years. There are no termsin the lease agreement that allow the lease to be extended beyond the five-year term. Theannual rate of interest implicit in the lease is 8%.8% discount factors are as follows.Year123452Cumulative present value of RM10.9261.78832.5773.3123.993Required:Prepare the extracted Statement of Financial Position at as 31 December 2022. Shows all theworkings.

Name: Majdah Sdn Bhd prepares financial statements to 31 December each year
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Description: Majdah Sdn Bhd prepares financial statements to 31 December each year. On 1 July 2022,Majdah Holding Sdn Bhd began to lease a machine. The lease gave the company the soleright to direct the use of the machine and receive all the economic benefits ar

The lease liability is calculated by discounting the lease payments using the interest rate implicit…

Answered: Required: Prepare the extracted…

Business

Accounting

Required: Prepare the extracted Statement of Financial Position at as 31 December 2022. Shows all the workings.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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NCH Bhd signed a lease agreement to lease one piece of computer equipment with KHL Bhd on 1 January 2022 with a lease rental of RM150,000 each per annum at the end of each financial year for 5 years. NCH Bhd also needs to pay an installation fee amounting to RM5,000. The lease agreement specifies that NCH Bhd has full control over the use of the computer equipment throughout the arrangement period. The estimated useful life of the computer equipment is five years and the guaranteed residual value at the end of the lease period is RM20,000. The lease rental was calculated and mutually agreed upon with a 10% rate of return. It is the policy of the company to adopt a cost model to initially and subsequently measure its property, plant and equipment, and the straight-line method is adopted to depreciate the property, plant and equipment. Required: a. b. Year (n) Discount factor at 10% [Single] (i) Discount factor at 10% [Annuity] (i) C. 1 0.9091 0.9091 2 3 4 5 0.8264 0.6830 0.6209 0.7513…
Please answer in good accounting form. Thanks! On January 1, 2020, EEE Corp. leased a warehouse for 5 years at an annual rental of ₱575,000 payable every December 31. The equipment had an estimated life of 8 years and shall revert back to the lessor at the expiration of the lease term. The lessee paid the lessor a lease bonus of ₱250,000 and was also responsible as per the lease agreement to pay the broker fees and commission amounting to ₱180,000. As an incentive however, the lessor shall reimburse EEE Corp. 75% of the said initial direct cost. The implicit lease rate known to both parties was at 12% while EEE Corporation’s incremental borrowing rate was at 10%.Requirements: (Use a PV FACTOR rounded off to 4 decimal places) 8. Depreciation expense on the Right of Use Asset in 2020 (under Straight Line Method)9. Carrying value of the Right of Use Asset as of December 31, 2021
Please answer in good accounting form. Thanks! On January 1, 2020, EEE Corp. leased a warehouse for 5 years at an annual rental of ₱575,000 payable every December 31. The equipment had an estimated life of 8 years and shall revert back to the lessor at the expiration of the lease term. The lessee paid the lessor a lease bonus of ₱250,000 and was also responsible as per the lease agreement to pay the broker fees and commission amounting to ₱180,000. As an incentive however, the lessor shall reimburse EEE Corp. 75% of the said initial direct cost. The implicit lease rate known to both parties was at 12% while EEE Corporation’s incremental borrowing rate was at 10%.Requirements: (Use a PV FACTOR rounded off to 4 decimal places)5. Initial cost of the Right of Use Asset6. Interest expense for 20207. Carrying value of the Lease Liability as of December 31, 2021
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I MISS HIGH SCHOOL INC. leased a machine from ANYARE SA COLLEGE LTD. on January 01, 2019. The first annual payment was made on January 01, 2020. The machine has an economic life of six years. The lease agreement requires four annual payments of P33,000, including P3,000 annual payment for repairs and maintenance. At the end of the lease term, the machine will be returned to ANYARE SA COLLEGE LTD. and I MISS HIGH SCHOOL INC. guarantees a residual value of P5,000. Interest implicit in the lease is 10% which is known to I MISS HIGH SCHOOL INC. For the year ended December 31, 2020, what would I MISS HIGH SCHOOL INC. record in relation to the lease? Round present value factors to five decimal places. a. An interest expense of P9,851. b. An interest expense of P0. c. An interest payable of P9,851. d. An interest payable of P7,836.
I MISS HIGH SCHOOL INC. leased a machine from ANYARE SA COLLEGE LTD. on January 01, 2019. The first annual payment was made on January 01, 2020. The machine has an economic life of six years. The lease agreement requires four annual payments of P33,000, including P3,000 annual payment for repairs and maintenance. At the end of the lease term, the machine will be returned to ANYARE SA COLLEGE LTD. A residual value in the amount of P5,000 has been guaranteed by I MISS HIGH SCHOOL INC. Interest implicit in the lease is 10% which is known to I MISS HIGH SCHOOL INC. For the year ended December 31, 2020, what would I MISS HIGH SCHOOL INC. record in relation to the lease? Round present value factors to five decimal places. a. An interest expense of P9,851. b. An interest expense of P0. c. An interest payable of P9,851. d. An interest payable of P7,836.