GLOVERSVILLE Ltd. Prepare the following lease payments schedule for the lease of a machine fromSubic Ltd. The machine has an economic life of six years. The lease agreement requires four annualpayments of P33,000, and the machine will be returned to Subic Ltd. at the end of the lease term. Thelease term payments schedule is:MLPReduction inBalance inInterestExpenseLiabilityLiabilityJuly 1, 201298,512July 1, 201330,0009,85120,14978,363July 1, 201430,0007,83622,16456,199July 1, 201530,0005,62024,38031,819July 1, 20163,18131,81935,000125,00026,48898,512The following five multiple choice questions relate to the information provided above.45. In its notes to the accounts at June 30, 2014. GLOVERSVILLE ltd would disclose future leasepayments of what amount?a. P95,000b. P65,000c. P99,000d. P104,00046. For the year ended June 30, 2013, what would GLOVERSVILLE Ltd record in relation to thelease?a. An interest expense of P9,851b. An interest expense of P nilc. An interest payable of P9,851d. An interest payable of P7,83647. How much annual depreciation expense would GLOVERSVILLE Ltd. Records?a. P24,628b. P16,419c. P15,585d. P23,378

Depreciation under lease accounting is calculated by dividing the present value of minimum lease…

GLOVERSVILLE Ltd. Prepare the following lease payments schedule for the lease of a machine from Subic Ltd. The machine has an economic life of six years. The lease agreement requires four annual payments of P33,000, and the machine will be returned to Subic Ltd. at the end of the lease term. The lease term payments schedule is: MLP Balance in Interest Expense Reduction in Liability Liability July 1, 2012 98,512 July 1, 2013 30,000 9,851 20,149 78,363 July 1, 2014 30,000 7,836 22,164 56,199 July 1, 2015 30,000 5,620 24,380 31,819 July 1, 2016 35,000 3,181 31,819 125,000 26,488 98,512 The following five multiple choice questions relate to the information provided above. 45. In its notes to the accounts at June 30, 2014. GLOVERSVILLE ltd would disclose future lease payments of what amount? a. P95,000 b. P65,000 c. P99,000 d. P104,000 46. For the year ended June 30, 2013, what would GLOVERSVILLE Ltd record in relation to the lease? a. An interest expense of P9,851 b. An interest expense of P nil c. An interest payable of P9,851 d. An interest payable of P7,836 47. How much annual depreciation expense would GLOVERSVILLE Ltd. Records? a. P24,628 b. P16,419 c. P15,585 d. P23,378

GLOVERSVILLE Ltd. Prepare the following lease payments schedule for the lease of a machine from Subic Ltd. The machine has an economic life of six years. The lease agreement requires four annual payments of P33,000, and the machine will be returned to Subic Ltd. at the end of the lease term. The lease term payments schedule is: MLP Balance in Interest Expense Reduction in Liability Liability July 1, 2012 98,512 July 1, 2013 30,000 9,851 20,149 78,363 July 1, 2014 30,000 7,836 22,164 56,199 July 1, 2015 30,000 5,620 24,380 31,819 July 1, 2016 35,000 3,181 31,819 125,000 26,488 98,512 The following five multiple choice questions relate to the information provided above. 45. In its notes to the accounts at June 30, 2014. GLOVERSVILLE ltd would disclose future lease payments of what amount? a. P95,000 b. P65,000 c. P99,000 d. P104,000 46. For the year ended June 30, 2013, what would GLOVERSVILLE Ltd record in relation to the lease? a. An interest expense of P9,851 b. An interest expense of P nil c. An interest payable of P9,851 d. An interest payable of P7,836 47. How much annual depreciation expense would GLOVERSVILLE Ltd. Records? a. P24,628 b. P16,419 c. P15,585 d. P23,378

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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