On 2 January 20X1, Edwards Inc., a public company, entered into a five-year equipment lease...
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On January X Edwards Inc., a public company, entered into a fiveyear equipment lease with Sebro Leasing Inc. The lease calls for annual lease payments of $ payable at the beginning of each lease year. Edwards IBR is Edwards does not know the lessors interest rate. The fair value of the equipment is $ Edwards depreciates equipment on a straightline basis, taking a full years depreciation in the year of acquisition.
PV of $ PVA of $ and PVAD of $Use appropriate factors from the tables provided.
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Prepare the lease liability amortization schedule for Edward. Prepare the journal entries relating to the leased asset and the lease liability for X and X for Edwards. If no entry is required for a transactionevent select No journal entry required" in the first account field. What amounts will appear on Edwards statement of financial position and statement of comprehensive income as at December X
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