During the year ended 30 September 20X6 Hyper entered into two lease transactions: On 1 October 20X5 a payment of $80,000, being the first of five equal annual payments of a lease for an item of plant which has a five-year useful life. The lease has an implicit interest rate of 10%. On 1 August 20X6 a payment of $15,000 for a nine-month lease of an item of excavation equipment. What amount in total amount (including depreciation) that would be charged to Hyper's statement of Profit or Loss for the year ended 30 September 20X6 , 20X7 and 20X8 in respect of the above transactions and what amount will appear under current and non- current liabilities in respect of this lease in the statement of financial position for those years?

During the year ended 30 September 20X6 Hyper entered into two lease transactions: On 1 October 20X5 a payment of $80,000, being the first of five equal annual payments of a lease for an item of plant which has a five-year useful life. The lease has an implicit interest rate of 10%. On 1 August 20X6 a payment of $15,000 for a nine-month lease of an item of excavation equipment. What amount in total amount (including depreciation) that would be charged to Hyper's statement of Profit or Loss for the year ended 30 September 20X6 , 20X7 and 20X8 in respect of the above transactions and what amount will appear under current and non- current liabilities in respect of this lease in the statement of financial position for those years?

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 9RE: Use the information in RE20-3. Prepare the journal entries that Richie Company (the lessor) would...

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