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Forums › ACCA Forums › ACCA FR Financial Reporting Forums › Urgent – accounting for finance leases by lessor
Hi all,
Could someone help me with this problem pls. I dont seems to know how to handle it.
thanks in advance.
Facts: given the following information:
Lease term 7 Years from March 31, 200X
Rental payments: $ 3,574 payable annually in advance
Asset cost: $ 20,000
Expected residual value: nil
Lessor‘s year-end date 30 September
Internal interest rate 8,1978 %
Required:
Determine the finance income for each accounting period.
Total finance cost 5018. Year 1 ,1346year 2,1163,year 4,966 n so on. Year 1 open bal. 20000. Adv pay(3574)+ interest 1346= closing 17772. I don’t know if this is what u have asked. Cheers